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#1423621 - 08/03/10 08:07 PM Re: Final SAFE Act published today Truffle Royale
Dani York, CRCM Offline
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Dani York, CRCM
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TN
If we are hiring a registered MLO, do we have to have a new background check completed on them?

When I first read the rule it seemed like the background check and fingerprinting were only required at initial registration. In one of the sample policies I have read, some are interpretting the rule to mean that fingerprints and a new background check is required for all new hires.

If its required for all new hires (registered or not), would we have to fingerprint through the Registry again? Or could we use a third party service outside the Registry?

(I thought I had this one down, but am now questioning myself) cry
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S.A.F.E. Act Forum
#1423634 - 08/03/10 08:17 PM Re: Final SAFE Act published today Dani York, CRCM
raitchjay Online
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What if you are hiring someone to be an MLO who has never been registered? Do you register them, then hire them? Or hire them, then register them? I ask because it seems if you hire them, then register them, you are automatically going to have downtime for them waiting for their registration to process.
Last edited by raitchjay; 08/03/10 08:18 PM.
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#1423645 - 08/03/10 08:31 PM Re: Final SAFE Act published today Dani York, CRCM
Dani York, CRCM Offline
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Originally Posted By: Dani York
If we are hiring a registered MLO, do we have to have a new background check completed on them?


Found it! The answer is yes, new background check must be initiated. See 103(a)(4)(B).
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#1423655 - 08/03/10 08:37 PM Re: Final SAFE Act published today raitchjay
Dani York, CRCM Offline
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Raitch, The government didn't think about productivity when they wrote this piece of .....

I think it will be a matter of what you decide to do. That being said, why would I want to register and end up not being hired? I would think that you could hire, then register, and during the lag time perform all your training. The employee could work so long as they do not engage in MLO activity. Without knowing what kind of lag time there would be, it is pure speculation right now regarding if this would be a prudent business practice though.
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#1423663 - 08/03/10 08:41 PM Re: Final SAFE Act published today Dani York, CRCM
raitchjay Online
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Dani...yeah, i thought about that in regards to registration first. I think i agree. Thanks.
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#1423672 - 08/03/10 08:48 PM Re: Final SAFE Act published today raitchjay
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I don't think this has been asked yet, so forgive me if I missed it.

Does anyone know if there are any differences between the FDICs draft final rule and the actual final rule? When the FDIC issued the draft they stated they would point out any changes, but they don't mention anything about it in the new FIL.

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#1423677 - 08/03/10 08:52 PM Re: Final SAFE Act published today raitchjay
RR Joker Offline
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Originally Posted By: raitchjay
Dani...yeah, i thought about that in regards to registration first. I think i agree. Thanks.


Raitch, in the GA version they say teh background check must be initiated within 10 days of the date of intial hire and be completed with satisfactory results with the first 90 days of employment.
Last edited by RR joker; 08/03/10 08:53 PM. Reason: quoted wrong/subj same/no changes
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#1423681 - 08/03/10 08:54 PM Re: Final SAFE Act published today MN Banker
Dani York, CRCM Offline
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To my knowledge the final rule is exactly the same as the interagency draft that was issued earlier this year.
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#1423687 - 08/03/10 08:58 PM Re: Final SAFE Act published today RR Joker
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Originally Posted By: RR joker
Originally Posted By: raitchjay
Dani...yeah, i thought about that in regards to registration first. I think i agree. Thanks.


Raitch, in the GA version they say teh background check must be initiated within 10 days of the date of intial hire and be completed with satisfactory results with the first 90 days of employment.


Interesting Joker.....guess i'll need to look more into Oklahoma's version, huh?
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#1423714 - 08/03/10 09:37 PM Re: Final SAFE Act published today raitchjay
Amos Offline
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Originally Posted By: raitchjay
Originally Posted By: RR joker
Originally Posted By: raitchjay
Dani...yeah, i thought about that in regards to registration first. I think i agree. Thanks.


Raitch, in the GA version they say teh background check must be initiated within 10 days of the date of intial hire and be completed with satisfactory results with the first 90 days of employment.


Interesting Joker.....guess i'll need to look more into Oklahoma's version, huh?


Maybe you don't need to check the state requirements. One of the footnotes on page 44657 in the Federal Register for the final rule says: "Pursuant to section 1503(11) of the S.A.F.E. Act (12 U.S.C. 5102(11)), Agency-regulated institutions and their employees who are acting within the scope of their employment with the Agency-regulated institutions are not subject to State licensing or registration requirements for mortgage loan originators."

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#1423718 - 08/03/10 09:40 PM Re: Final SAFE Act published today Amos
raitchjay Online
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Ok...so i guess that takes it back to an internal decision. Thanks.
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#1423850 - 08/04/10 12:54 PM Re: Final SAFE Act published today raitchjay
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Or, Raitch...you could go by your State's guidelines (if any). When it's all said and done, the end result was the same as Dani's opinion. Hire, run the stuff ASAP and in the meantime, they can do non-MLO stuff.

This may help too:

Some commenters asked the Agencies to clarify whether the Registry may collect fingerprints and submit a request for a background check before the Agency-regulated institution employs a mortgage loan originator rather than waiting until after that individual is hired to submit fingerprints to the Registry. The Agencies have no objection to the Registry processing a background check just prior to the employment of a mortgage loan originator, should the Registry provide this service, and believe this could satisfy the requirements of the rule.Show citation box
Last edited by RR joker; 08/04/10 01:04 PM.
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#1423898 - 08/04/10 01:48 PM Re: Final SAFE Act published today Truffle Royale
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My last e-mail gave a choice of three meeting dates/times. Today I will just inform them of when the meeting will be.

Compliance is so much fun!
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#1424650 - 08/05/10 03:14 PM Re: Final SAFE Act published today Sewanee, CRCM
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Now that the regulation is final our senior team is struggling with who should be the lead. H.R. or Lending? Has anyone made this decision yet?

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#1424653 - 08/05/10 03:16 PM Re: Final SAFE Act published today lmaizel
Dani York, CRCM Offline
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TN
It's all up to the bank. For us, HR will be the system administrator and do all the verifying of information. Compliance will be the point of contact and do all the training and testing.
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#1424692 - 08/05/10 03:49 PM Re: Final SAFE Act published today Dani York, CRCM
Wisco Crime Stoppers Offline
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Our compliance officer is wondering where to find the exact definition of MLO. Does it include just primary residential or would it also include a non-owner occupied such as a rental?
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#1424696 - 08/05/10 03:53 PM Re: Final SAFE Act published today Wisco Crime Stoppers
RR Joker Offline
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It's very descriptive in the regulation. The definitions are in there and the types of loans. This rule deals with consumer access to the info, so I think that would be your key there (besides the definition of a Residental mortgage which is totally consumer-based).

Here is a brief summary (portion) that I did for our bank:

Mortgage Loan Originator is an individual who:
• Takes a residential mortgage loan application and;
• Offers or negotiates terms of a RM loan for compensation or gain.
It does not include:
• An individual who performs purely administrative or clerical tasks for a MLO. Administrative tasks include:
o Receipt, collection and distribution of info common for the processing or underwriting of a loan in the RM industry and communication with a consumer to obtain info necessary for the processing or underwriting of a RML.
[more details regarding what a MLO is or isn’t can be found in Appendix A beginning on page 44691 of the FR]
A Residential Mortgage Loan includes:
• Any loan primarily for personal, family or household use that is secured by a deed, including existing home or RE upon which a home is to be constructed and includes refinances, reverse mortgage, home equity lines of credit and other first and additional lien loans that meet the above qualifications.
Last edited by RR joker; 08/05/10 03:56 PM.
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#1424715 - 08/05/10 04:22 PM Re: Final SAFE Act published today Dani York, CRCM
Funky Falcon Offline
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Originally Posted By: Dani York
In one of the sample policies I have read, some are interpretting the rule to mean that fingerprints and a new background check is required for all new hires.



Where have you found sample policies? Is anyone willing to share what they have come up with so far?

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#1424721 - 08/05/10 04:25 PM Re: Final SAFE Act published today Funky Falcon
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Thanks much, one more question -

A Residential Mortgage Loan includes:
• Any loan primarily for personal, family or household use that is secured by a deed, including existing home or RE upon which a home is to be constructed and includes refinances, reverse mortgage, home equity lines of credit and other first and additional lien loans that meet the above qualifications.

Is this bullet from the reg? If so, where can we find it?
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#1424733 - 08/05/10 04:45 PM Re: Final SAFE Act published today Funky Falcon
Dani York, CRCM Offline
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Dani York, CRCM
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TN
Originally Posted By: Funky Falcon
Originally Posted By: Dani York
In one of the sample policies I have read, some are interpretting the rule to mean that fingerprints and a new background check is required for all new hires.



Where have you found sample policies? Is anyone willing to share what they have come up with so far?


I got them from some other BOL posters. PM me your email and I'll send you what I have.
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#1424734 - 08/05/10 04:48 PM Re: Final SAFE Act published today Wisco Crime Stoppers
Dani York, CRCM Offline
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Dani York, CRCM
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TN
Originally Posted By: Hockey Rules
Thanks much, one more question -

A Residential Mortgage Loan includes:
• Any loan primarily for personal, family or household use that is secured by a deed, including existing home or RE upon which a home is to be constructed and includes refinances, reverse mortgage, home equity lines of credit and other first and additional lien loans that meet the above qualifications.

Is this bullet from the reg? If so, where can we find it?


See 365.102(e) in the definitions section of the reg.
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I can't herd the cats anymore, so I just set up the electric fences and let them fry when they stray out of bounds.

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#1424740 - 08/05/10 04:58 PM Re: Final SAFE Act published today Dani York, CRCM
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Thanks so much
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#1424767 - 08/05/10 05:38 PM Re: Final SAFE Act published today Wisco Crime Stoppers
RR Joker Offline
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Thanks for covering, Dani!
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#1424787 - 08/05/10 06:01 PM Re: Final SAFE Act published today RR Joker
ItsJustMe Offline
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New York
Someone just informed management that there is no cost to register and no other requirements (i.e. finger printing, testing, etc.). I realize that there is no testing requirements for registering (only licensing) but I can't find where this person thinks that there is no finger printing requirement...and I know that our institution will have to pay for the fingerprinting. Has anyone else heard of this??

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#1424794 - 08/05/10 06:08 PM Re: Final SAFE Act published today ItsJustMe
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Don't waste your time digging. Ask 'someone' where they found this information.

Side bar: Don't you love it when 'someone' walks in and says whatever management was wishing were true and they all jump all over it?! aarrgghh

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