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#1439497 - 09/07/10 04:26 PM
SAFE Act
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Platinum Poster
Joined: Nov 2005
Posts: 797
Washington State
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I had management ask me what the penalties were for non-compliance. I did not see this addressed in the rule. Does anyone know?
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#1439555 - 09/07/10 05:54 PM
Re: SAFE Act
Baker
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Platinum Poster
Joined: Nov 2005
Posts: 797
Washington State
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No, I did not see a penalty section in the final rule.
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#1440403 - 09/08/10 09:04 PM
Re: SAFE Act
Kathleen O. Blanchard
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Platinum Poster
Joined: Jul 2004
Posts: 505
WA
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We have already had loans suspended on the secondary market for not providing our number and our originator's number. Go Figgure!! We are an FDIC regulated non-member bank.
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#1440572 - 09/09/10 01:23 PM
Re: SAFE Act
Moman
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Power Poster
Joined: Apr 2005
Posts: 3,663
TN
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I'd make a few phone calls to the investors. Keep going up the food chain untilyou get someone who has a clue. Explain that since you are a federally regulated FI you are not able to get any identifiers yet. If they balk, refer them to this page of the NMLS website, then ask them if they know how you can get a number before anyone else. http://mortgage.nationwidelicensingsystem.org/fedreg/Pages/default.aspx
_________________________
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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#1441779 - 09/13/10 04:32 AM
Re: SAFE Act
Baker
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10K Club
Joined: Dec 2000
Posts: 21,293
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I had management ask me what the penalties were for non-compliance. I did not see this addressed in the rule. Does anyone know? From a footnote in the discussion section of the SAFE Act: [bold]1 The OCC, Board, FDIC, and OTS have the authority to take enforcement actions against their respective Agency-regulated institutions and individual employees of those institutions who violate the S.A.F.E. Act and this final rule, pursuant to 12 U.S.C. 1818.[/bold] The FCA has authority to take enforcement actions against Farm Credit System institutions and individual employees who violate the S.A.F.E. Act and this final rule pursuant to Title V, Part C of the Farm Credit Act of 1971, as amended, 12 U.S.C. 2261 et seq. The NCUA has the authority to take enforcement actions against Federally-insured credit unions and their employees who violate the S.A.F.E. Act and this final rule under 12 U.S.C. 1786. For privately insured credit unions, memoranda of understanding between NCUA and applicable State supervisory authorities will establish enforcement authority. Review 12 USC 1818 (b)....cease and desist proceedings. It can be invoked for failure to comply with any law or regulation.
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#1442015 - 09/13/10 04:51 PM
Re: SAFE Act
Kathleen O. Blanchard
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Platinum Poster
Joined: May 2008
Posts: 915
Orlando, FL
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I am working on a presentation to the lenders and I wanted to give some detail about the penalty for non-compliance.
I know it could mean a C&D for the bank, and I am assuming the MLO could lose their registration and not be allowed to originate loans any more, etc. But are there more specific details out there somewhere?
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#1442041 - 09/13/10 05:38 PM
Re: SAFE Act
Many Hats
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Platinum Poster
Joined: May 2008
Posts: 915
Orlando, FL
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Another question....I am revising our Home Equity loan/line applications to include language regarding the SAFE Act. (see below). Should we refer to the MLO's unique identifier as "MLO Unique Identifier" or "NMLS ID"? "Title V of the Housing Economic Recovery Act of 2008, the Secure and Fair Enforcement Mortgage Licensing Act of 2008 (S.A.F.E. Act) is designed to enhance consumer protection and reduce fraud through the setting of minimum standards for the licensing and registration of mortgage loan originators (MLO's). Registration is required for MLO's who work for an insured depository institution. The following website will provide you with information about all MLO's who are either licensed or registered, www.nmlsconsumeraccess.org. The registered MLO who is employed by Name of Bank is listed below with their unique identifier. This identifier will be needed to access the information about a particular MLO. Mortgage Loan Originator Name: _______ MLO Unique Identifier:___________ OR NMLS ID: __________
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#1442043 - 09/13/10 05:39 PM
Re: SAFE Act
Many Hats
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10K Club
Joined: Dec 2000
Posts: 21,293
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The MLOs, as bank employees, are "institution affiliated parties" and as such can be put under an order by regulators, up to and including being banned from the industry. From 12 USC 1818: If, in the opinion of the appropriate Federal banking agency, any insured depository institution, depository institution which has insured deposits, or any institution-affiliated party is engaging or has engaged, or the agency has reasonable cause to believe that the depository institution or any institution-affiliated party is about to engage, in an unsafe or unsound practice in conducting the business of such depository institution, or is violating or has violated, or the agency has reasonable cause to believe that the depository institution or any institution-affiliated party is about to violate, a law, rule, or regulation, or any condition imposed in writing by a Federal banking agency in connection with any action on any application, notice, or other request by the depository institution or institution-affiliated party, or any written agreement entered into with the agency, the appropriate Federal banking agency for the depository institution may issue and serve upon the depository institution or such party a notice of charges in respect thereof. EDIT: If you review 12 USC 1818, you will see that there are monetary penalties available as well, both against the bank and employees, directors, etc.
Last edited by MS Kaybee; 09/13/10 05:47 PM.
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#1442110 - 09/13/10 06:50 PM
Re: SAFE Act
Kathleen O. Blanchard
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Platinum Poster
Joined: May 2008
Posts: 915
Orlando, FL
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Another question:
As I am reading this, I was wondering if it really applies to us? For example, what kind of third-party vendors is this referring to? We're mostly a commercial bank, but we do a residential loan or a HELOC/HELOAN here and there. The only third party vendors we have would be for obtaining credit reports, AVM's, flood, O&E's and tax service - and none of them would have to be licensed or registered.
"Review all contracts with third-party providers with which the Bank has arrangements related to mortgage loan origination and ensure that they include a provision attesting that the third party complies with the S.A.F.E. Act, including but not limited to appropriate licensing and/or registration of individuals acting as MLOs."
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#1508873 - 02/11/11 04:33 PM
Re: SAFE Act
Kathleen O. Blanchard
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100 Club
Joined: Aug 2005
Posts: 223
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Does anyone see a problem with just designating a couple of lenders at each branch to be the go-to for mortgage related transactions?
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