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#1430559 - 08/18/10 01:25 PM
SAFE Act
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Gold Star
Joined: Jun 2008
Posts: 287
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Did Dodd-Frank take HELOCs out of the definition of mortgage loan for the SAFE Act?
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#1430614 - 08/18/10 02:15 PM
Re: SAFE Act
Random
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Power Poster
Joined: Apr 2005
Posts: 3,663
TN
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I don't know, but I would go with the final rule that was issued by the Agencies (which includes HELOCs). I'm not changing our SAFE Act policy unless the Agencies issue new guidance.
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#1430715 - 08/18/10 03:38 PM
Re: SAFE Act
Dani York, CRCM
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100 Club
Joined: Jun 2001
Posts: 246
San Francisco
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I haven't studied Dodd-Frank in depth, but it's my understanding it increased the categories of financial institution employees that are potentially subject to licensing and registration. Dodd-Frank essentially goes back to the beginning and includes people that were intentionally left out of the original SAFE Act. And HELOCs I believe are still absolutely included.
I think if you operate on the principle that nothing ever gets easier or less burdensome, you won't be far wrong.
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The opinions expressed are mine and not those of my employer
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#1430783 - 08/18/10 04:30 PM
Re: SAFE Act
Dani York, CRCM
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Power Poster
Joined: May 2002
Posts: 6,259
NW IL
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I'm not changing our SAFE Act policy unless the Agencies issue new guidance. Agreed.
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#1431047 - 08/18/10 08:54 PM
Re: SAFE Act
QCL
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10K Club
Joined: Oct 2000
Posts: 40,086
Cape Cod
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I see nothing in the Dodd-Frank Act that makes substantive changes to the provisions of the SAFE Act. There's a lot of language that transfers responsibility from HUD to the Bureau, and an addition to TILA that calls for the Fed to issue some regs (presumably as part of Reg Z), but there's no change in definitions that I could find.
If someone is aware of specific changes, please cite a Dodd-Frank Act section number for us to home in on.
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#1442087 - 09/13/10 06:31 PM
Re: SAFE Act
John Burnett
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10K Club
Joined: May 2004
Posts: 10,124
Way, way south.
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Per Title X of the Frank Dodd Act, the compliance for Federal-related banking institutions has been pushed out to July 2011.
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#1442375 - 09/14/10 01:54 PM
Re: SAFE Act
MB Guy
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10K Club
Joined: May 2004
Posts: 10,124
Way, way south.
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Here is the excerpt from F-D: in section 1507 (12 U.S.C. 5106)— (A) in subsection (a)— (i) by striking paragraph (1) and inserting the following: ‘‘(1) IN GENERAL.—The Bureau shall develop and maintain a system for registering employees of a depository institution, employees of a subsidiary that is owned and controlled by a depository institution and regulated by a Federal banking agency, or employees of an institution regulated by the Farm Credit Administration, as registered loan originators with the Nationwide Mortgage Licensing System and Registry. The system shall be implemented before the end of the 1-year period beginning on the date of enactment of the Consumer Financial Protection Act of 2010.’’; and
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#1442543 - 09/14/10 03:46 PM
Re: SAFE Act
Irishguy
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Power Poster
Joined: Nov 2000
Posts: 2,701
PA
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Since the reg is effective on 10/1 and it requires policies and procedures, you will need to have the policies and procedures by that date. We just left a blank in ours for the date when the registry becomes available.
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Opinions expressed are mine and not necessarily those of my employer.
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#1442544 - 09/14/10 03:46 PM
Re: SAFE Act
Irishguy
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10K Club
Joined: May 2004
Posts: 10,124
Way, way south.
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We are holding off on the Policy and Procedures until we get a little more clarification.
We have discussed SAFE Act compliane with our loan service center and with bank line managers as well, but we're holding off on the policy, and we feel comfortable with that for now.
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#1442692 - 09/14/10 05:52 PM
Re: SAFE Act
MB Guy
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Power Poster
Joined: Nov 2001
Posts: 7,988
FINALLY ABOVE the gnat line
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We will have our policy approved at this month's board meeting - in time to be in place by 10-1-10. Our procedures will be draft procedures that I can use for training until we get more info from the registry. Can't tell folks where to go for fingerprints if they (the regulators) haven't provided approved vendors.
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#1442698 - 09/14/10 05:53 PM
Re: SAFE Act
waldensouth
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10K Club
Joined: Oct 2006
Posts: 14,390
Cheeseheadland
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Ditto Waldensouth.
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#1442743 - 09/14/10 06:16 PM
Re: SAFE Act
#Just Jay
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Power Poster
Joined: Jul 2002
Posts: 5,568
New Jersey
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Ditto Waldensouth here, too.
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#1443214 - 09/15/10 03:27 PM
Re: SAFE Act
Sinatra Fan
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Member
Joined: Mar 2010
Posts: 67
good ol south
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Same here Waldensouth. We're having our Policies and Procedures in place and plan to mae the needed amendments when we receive more infomration on the Registry.
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#1443501 - 09/15/10 07:36 PM
Re: SAFE Act
CarolinaComplian
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10K Club
Joined: May 2004
Posts: 10,124
Way, way south.
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Can someone give me the exact excerpt where it states that a policy is due by 10/1/10? I reviewed it but couldn't find it. Thanks.
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#1443513 - 09/15/10 07:48 PM
Re: SAFE Act
MB Guy
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10K Club
Joined: Aug 2002
Posts: 47,680
Bloomington, IN
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There is none. They just have to be in place prior to starting your registration process.
This final rule’s requirement to adopt these policies and procedures applies to all Agency-regulated institutions that employ individuals who act as mortgage loan originators, regardless of the application of any de minimis exception to their employees. These policies and procedures should be in place at an institution prior to the registration of its employees pursuant to this rule.
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The opinions expressed are mine and they are not to be taken as legal advice.
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#1443516 - 09/15/10 07:51 PM
Re: SAFE Act
Irishguy
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10K Club
Joined: May 2004
Posts: 10,124
Way, way south.
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Yes, thanks Dan, very valuable information.
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#1443562 - 09/15/10 08:26 PM
Re: SAFE Act
NotDoneYet
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10K Club
Joined: Aug 2002
Posts: 47,680
Bloomington, IN
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Where? The above quote was taken from the July 28, 2010 release of the final rule and in my search I found no such requirements. The only place I found October 1, 2010 mentioned was
DATES: This final rule is effective on October 1, 2010. Compliance with § __.103 (registration requirement) of the final rule is required by the end of the 180-day period for initial registrations beginning on the date the Agencies provide in a public notice that the Registry is accepting initial registrations.
I also located the following in the July 28 release;
This in effect provides institutions with an implementation period longer than 180 days as institutions and their employees can begin to implement the final rule’s requirements before the Registry is operational, i.e., develop policies and procedures, train employees, gather information needed for registration, and program and implement system controls before registration is required.
But no where did I find reference to October 1, 2010 as being the deadline for the policy and procedures to be in place, nor did I find any other "effective" date for policies and procedures other than what I quoted above. I'm not saying they're not there just that I didn't find any such requrement in my search, so if you have the citation please post it for the rest of us.
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The opinions expressed are mine and they are not to be taken as legal advice.
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#1443608 - 09/15/10 09:18 PM
Re: SAFE Act
NotDoneYet
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Diamond Poster
Joined: Nov 2004
Posts: 2,310
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The OTS said something similar. IMPORTANT NOTE: The agencies expect the registry to begin accepting federal registrations in early 2011 and will make a public announcement when the date is determined. However, OTS regulations require institutions to adopt written policies and procedures by October 1, 2010, to assure compliance with the law's requirements.I got this wording from the following page. http://www.ots.treas.gov/?p=RegistrationOfMortgageLoanOriginators
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Opinions expressed are my own and not necessarily those of my employer. They are not legal advice.
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#1443610 - 09/15/10 09:20 PM
Re: SAFE Act
Dan Persfull
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Power Poster
Joined: Aug 2002
Posts: 3,094
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The OCC BULLETIN 2010-33 states "The final rule is effective on October 1. National banks must establish the policies and procedures required by the final rule by that date." So if you are an OCC bank, you have a couple of weeks left.
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Opinions are my own and not of my employer.
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#1443637 - 09/15/10 09:56 PM
Re: SAFE Act
ahou
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Member
Joined: Jun 2010
Posts: 96
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Does this policy require board approval?
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