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#1420636 - 07/28/10 12:24 PM Final SAFE Act published today
waldensouth Offline
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The Final SAFE Act was published today in the federal register.
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S.A.F.E. Act Forum
#1420643 - 07/28/10 12:42 PM Re: Final SAFE Act published today waldensouth
Dani York, CRCM Offline
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So now we are just waiting on the registry to become available???? Anyone heard if it is ready for banks yet?
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#1420647 - 07/28/10 12:45 PM Re: Final SAFE Act published today Dani York, CRCM
RR Joker Offline
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The website still has a stopsign for FI's...so I'd say - not yet.
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#1420721 - 07/28/10 01:53 PM Re: Final SAFE Act published today RR Joker
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Wow..in scrolling through the daily emailed FR...the ruling was in a very odd place and not titled...I don't usually even go past "s" in the list and this was at the very bottom...too weird!

On the FR website, there is a clickable index version.'
Here
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#1420788 - 07/28/10 03:03 PM Re: Final SAFE Act published today RR Joker
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I'm trying to figure out if our "underwriter" and Credit Department staff end up covered by this rule. They don't have any direct customer contact. However, if we are asked to issue a pre-approval, the letter goes to the customer signed by the underwriter. They "indirectly" receive the application from the mortgage loan originator (so they meet the take an application part of the definition). They offer the terms because they make the u/w decision and send the written letter with their signature. They are compensated for the performance of their u/w responsibilities (but not based on what is or isn't approved).

It doesn't seem reasonable that they should be covered by this reg. That would then mean I have to have everyone up to the Chief Credit Officer and CEO registered as the lending limits are tiered and they have to be involved in our larger $ loans or when the underwriter is on PTO. Thoughts?
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#1420868 - 07/28/10 04:14 PM Re: Final SAFE Act published today sammylou
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Somewhere in the middle


Federal Agencies Issue Final Rules to Implement S.A.F.E. Act Requirements for Registration of Mortgage Loan Originators
Federal agencies issued final rules today requiring residential mortgage loan originators who are employees of national and state banks, savings associations, Farm Credit System institutions, credit unions, and certain of their subsidiaries (agency-regulated institutions) to meet the registration requirements of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (S.A.F.E. Act). The final rules are being issued by the Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Office of Thrift Supervision, Farm Credit Administration, and National Credit Union Administration (the agencies).
The S.A.F.E. Act requires residential mortgage loan originators who are employees of agency-regulated institutions to be registered with the Nationwide Mortgage Licensing System and Registry (registry). The registry is a database created by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators to support the licensing of mortgage loan originators by the states. As part of this registration process, residential mortgage loan originators must furnish to the registry information and fingerprints for background checks. The S.A.F.E. Act generally prohibits employees of agency-regulated institutions from originating residential mortgage loans unless they register with the registry.
The agencies' final rules establish the registration requirements for residential mortgage loan originators employed by agency-regulated institutions and requirements for these institutions, including the adoption of policies and procedures to ensure compliance with the S.A.F.E. Act and final rules. As required by the S.A.F.E. Act, the final rules also require that each residential mortgage loan originator obtain a unique identifier through the registry that will remain with that residential mortgage loan originator, regardless of changes in employment. This will enable consumers to easily access employment and other background information about registered mortgage loan originators from the registry. Under the final rules, registered mortgage loan originators and agency-regulated institutions must provide these unique identifiers to consumers.
The final rules take effect on October 1, 2010. The agencies anticipate that the registry could begin accepting federal registrations as early as January 28, 2011. Employees of agency-regulated institutions must not register until the agencies instruct them to do so. The agencies will provide an advance announcement of the date when the registry will begin accepting federal registrations, and agency-regulated institutions and their applicable employees will have 180 days from that date to comply with the initial registration requirements.
The final rules appear in today's Federal Register.
The Federal Register notice and final rules are attached.

Fed Announcement
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#1420898 - 07/28/10 04:58 PM Re: Final SAFE Act published today DD Regs
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Does anyone know if there is or will be an official form(s) for submitting registrants' information?
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#1420939 - 07/28/10 05:43 PM Re: Final SAFE Act published today mariposa
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I am not sure about an official form. What I did is take the required informatio to be submitted and put that in a form that each originator can fill out for HR.

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#1420940 - 07/28/10 05:47 PM Re: Final SAFE Act published today ahkcompliance
raitchjay Offline
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Is there a huge rush on this? Since the registration is STILL not open and we have 6 months to get registered? Should i be getting on this today?
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#1420944 - 07/28/10 05:49 PM Re: Final SAFE Act published today raitchjay
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I got a form ready and draft policy and procedures drafted just so I am not rushed when the system is up and running.

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#1420993 - 07/28/10 06:28 PM Re: Final SAFE Act published today ahkcompliance
Princess of Power Offline
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ahkcompliance
are you willing to share your draft form &/or policy and procedures?

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#1420994 - 07/28/10 06:29 PM Re: Final SAFE Act published today raitchjay
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Originally Posted By: raitchjay
Is there a huge rush on this? Since the registration is STILL not open and we have 6 months to get registered? Should i be getting on this today?


No RJay, you should be on this yesterday. This may look relatively simple, but there are a ton of issues presented, even for small shops. There are loan origination and loan servicing systems to re-program, HR systems and job descriptions and duties to think about, tracking existing and former employees, fingerprinting, etc., etc. If you're a shop that doesn't routinely fingerprint new employees, you're going to have to start now, and get your existing employees who are required to register fingerprinted as well.

All I can say is it's a good thing there's not a pending RESPA-type reg out there competing for resources. Good luck everyone.
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#1421081 - 07/28/10 07:47 PM Re: Final SAFE Act published today Way Out West
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Page 44657 of the Federal Register mentions the MU4 form for registration purposes. If you google "MU4 form" the one that comes up says "do not use" but it gives you a good idea of what will/might need collected.

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#1421163 - 07/28/10 09:02 PM Re: Final SAFE Act published today RR Joker
raitchjay Offline
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Originally Posted By: RR joker
Wow..in scrolling through the daily emailed FR...the ruling was in a very odd place and not titled...I don't usually even go past "s" in the list and this was at the very bottom...too weird!

On the FR website, there is a clickable index version.'
Here


Daily e-mailed Federal Register? Could you help me out with getting that?
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#1421166 - 07/28/10 09:06 PM Re: Final SAFE Act published today NotDoneYet
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The federal registration page of the Nationwide mortgage licensing system was updated with information about today's final rule. Here's a link to it.
http://mortgage.nationwidelicensingsystem.org/FEDREG/Pages/default.aspx

The FFIEC also updated its SAFE page to include a reference to today's final rule.
http://www.ffiec.gov/safeact.htm
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#1421232 - 07/28/10 11:31 PM Re: Final SAFE Act published today waldensouth
husker14 Offline
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The appendix describes a situation regarding quoting rates; if our ops officer quotes a loan rate, do they now fall under the definition of a mortgage originator??

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#1421341 - 07/29/10 01:34 PM Re: Final SAFE Act published today husker14
sammylou Offline
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Has anyone decided how they think their underwriters are impacted by this reg? See my post above.
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#1421348 - 07/29/10 01:44 PM Re: Final SAFE Act published today raitchjay
waldensouth Offline
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Originally Posted By: raitchjay
Originally Posted By: RR joker
Wow..in scrolling through the daily emailed FR...the ruling was in a very odd place and not titled...I don't usually even go past "s" in the list and this was at the very bottom...too weird!

On the FR website, there is a clickable index version.'
Here


Daily e-mailed Federal Register? Could you help me out with getting that?



I have the table of contents e-mailed daily. Then I just scroll down the agencies to the ones that matter to banking and see if there are anynew rules. You can click on the link next to the rule and go directly to that rule.
To subscribe to the Federal Register Table of Contents LISTSERV electronic mailing list, go to http://listserv.access.gpo.gov and select Online mailing list archives, FEDREGTOC-L, Join or leave the list (or change settings); then follow the instructions.
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#1421356 - 07/29/10 01:49 PM Re: Final SAFE Act published today waldensouth
SUSANE1 Offline
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ok... define the definition of Mortgage Loan Originator.
I am the only loan officer in a small 50M community bank.. I made home loans........am I an official MLO.....
I don't think people of my position were the cause of the problems that led to this rule.
ugh.

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#1421380 - 07/29/10 02:11 PM Re: Final SAFE Act published today SUSANE1
RR Joker Offline
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They weren't, but you are paying the "price". It's like everything else wrong with the financial industry now. It wasn't the small community banker's that were the problem...It was the huge investment companies, for the most part...and the "dirty" loan brokers.
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#1421382 - 07/29/10 02:11 PM Re: Final SAFE Act published today waldensouth
Cats Offline
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Testing?

This news article from the AP this morning states: Brokers and loan officers need to pass a national test, a state test and a criminal background check.

(emphasis mine)

However, this article from Reuters mentions the registration but says nothing about testing.

I printed out and read through parts of the final rule yesterday, concentrating on the definitions and registration requirements. I didn't see anything about testing. did I miss it? Or is the AP article incorrect and bank lending officers do not have to undergo testing?
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#1421386 - 07/29/10 02:12 PM Re: Final SAFE Act published today Cats
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The educational and testing requirements do not apply to regulated bank employees. I think it's background and fingerprinting, if memory serves me.
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#1421389 - 07/29/10 02:15 PM Re: Final SAFE Act published today RR Joker
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Where is the appendix? I printed off the final rule, but i don't see the appendix.
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#1421391 - 07/29/10 02:15 PM Re: Final SAFE Act published today RR Joker
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That's what I thought, but figured I better verify! Thanks, RR.
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#1421397 - 07/29/10 02:18 PM Re: Final SAFE Act published today raitchjay
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Originally Posted By: raitchjay
Where is the appendix? I printed off the final rule, but i don't see the appendix.


raitchjay, I see an Appendix A to Subpart F in the clickable index I posted above.
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