Does anyone know where teh final rule talks about the fees?

Ok--found it page 14 it says it can charge reasonable fees for registrations, renewals, changes, etc.

I would hold off on fingerprinting until we know more about the Registry. The BOL webinar materials about the SAFE Act indicated that the fingerprinting and background checks would be done through the Registry. If you look at what the NMLS currently does now, you will see that you have to schedule your fingerprinting through one of their approved vendors. We are waiting until the Registry has more info for how they will handle bank MLOs before we get everyone fingerprinted.

Good idea Dani. I wasn't anticipating doing it soon....just trying to get a handle on it in my head.

Also section 1100 of the Dodd-Frank Act made amendments to the S.A.F.E. Act. One of the amendments refers to fees. No fees will be charged to consumers for accessing the registry.

imagine that!

I just wonder how many consumers will actually utilize this tool? It does require a certain amount of initiative and personal responsibility to find out who you're really dealing with.

Thought this was funny...Do they change/expire?

(B) New fingerprints of the employee are submitted to the Registry for a background check, as required by paragraph (d)(1)(ix) of this section, unless the employee has fingerprints on file with the Registry that are less than 3 years old;Show citation box

I guess so.

1. You will complete the information contained on form MU4 (I have linked it here in one of hte other SAFE threads somewhere). The actual form is NOT available for US, the one that is is the licensing form. The person that I talked to at NMLS thought that they would be similar if not the same. http://www.banking.state.ny.us/mbmlomu4.pdf

The MU4 (or the information contained therein) is the first step of the CBC. Criminal Background Check http://mortgage.nationwidelicensingsystem.org/profreq/background/Pages/default.aspx

After the CBC is done, I think, then the fingerprinting comes into play.

http://mortgage.nationwidelicensingsyste...ick%20Guide.pdf

2. Fingerprints - we are still not sure how we are going to do this. The cost is cheaper to do it electronically, per the NMLS site. They expire (why I have no idea) in 3 years.

3. MLO - No we are not requiring underwriters.

More Links - http://mortgage.nationwidelicensingsystem.org/licensees/resources/Pages/QuickGuides.aspx

http://mortgage.nationwidelicensingsystem.org/profreq/background/Pages/Fingerprinting.aspx

I am drafting our policy now. We still have too many unanswered questions (and yes, I took the BOL webinar) about the registry.

This may be a dumb question but what is the FBI looking for on background checks and what will their recourse be if they find someone with a background?

It is up to each financial institution to decide what to do if something comes back in the background check.

So I've seen a discussion on underwriters and processors being subject (I've already made up my mind - no, and I'm sticking to that story).

What about loan assistants? They take applications but don't necessarily negotiate credit terms. Although, they may negotiate terms on the LO's behalf at times.

Anyone want to weigh in?

The way I read it if the assistant may negotiate the terms on behalf of the lender or communicate the terms to the borrower, they would be covered (provided that they may also accept the application).

On loan assistants, I'd check what the assistant is doing against the activities listed in the appendix to see whether they pass the two prong test or not. Even if they are subject, I would then find out whether you can exempt them through the de minimis exemption. 5 loans isn't a whole lot, but it might save you some money.

The only thing about the de minimis exception is what happens if they hit number 6. IMO keeping track of the 5 to make sure no one goes over their 5 to keep their exemption costs a lot more in monitoring time.

I agree....to me, if a loan assistant at any time in the course of their job would meet the two-pronged test, i would call them an "MLO" for SAFE Act purposes and get them registered. Better safe than sorry, and as Dani says, a big compliance pain to try to monitor that they stay at 5 or less.

I wouldn't consider the deminimis exception for the reason Dani noted.

Our loan assistants have no authority, and the only terms they may communicate for "negotiation" would be terms already preset by an LO with authority (in other words, they wouldn't be negotiating anything that didn't come from an LO).

I think during training I'm just going to stress to LA's and LO's that LA's can't do any negotiating or else they'll be subject to the registration requirements. I'll also define that point in policy. I think that will make it easier than trying to figure out the semantics of whether they're MLO's or not.

Here's a link to an FRB SR Letter about the final rule. http://www.federalreserve.gov/boarddocs/srletters/2010/sr1014.pdf

This is much better than the OCC or FDIC letters. Thanks for sharing!

Regarding the following - To what degree are FI's responsible for a registered MLO notification of change of employment. I don't want someone who left our bank to be associated with us.
"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."

Within 30 days of change in employment, the MLO must update their employment information. The bank must also update their association with them (claim/unclaim them). The actual how to and what it will look like is yet to be determined.

When will we have to have policy and procedures implmented by? I know the rule takes effect on 10/1/10. Is this the date we need to them in place by?

I have heard conjecture both ways about whether or not policies must be in place by 10/1. I am trying to have the basic (if only a bare-bones) policy in place by 10/1/10. The procedures will not be ready until we know more about the Registry.

I would assume that the policy must be adopted by 10/1 at least.

If anything, I belive regulators are going to expect to see a decent record of preparation and communication on this topic, and implementing a policy by 10/1 would be a prudent measure even if not required.

Is anyone else having a problem getting an appropriate level of response/interest from the other areas of the bank which need to be involved in this? I'm in Compliance and am working to get those in Lending Management and HR involved, but so far the response is underwhelming.

sewanee, it's because we're all so overwhelmed with everything else. Give due by dates and I bet you'll start seeing some action, begrudging as it may well be.