Learn More - Click Here!

Page 1 of 2 1 2
Thread Options
#1430559 - 08/18/10 01:25 PM SAFE Act
Random Offline
Gold Star
Joined: Jun 2008
Posts: 287
Did Dodd-Frank take HELOCs out of the definition of mortgage loan for the SAFE Act?

Return to Top
#1430614 - 08/18/10 02:15 PM Re: SAFE Act Random
Dani York, CRCM Offline
Power Poster
Dani York, CRCM
Joined: Apr 2005
Posts: 3,663
TN
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.
_________________________
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.

Return to Top
#1430715 - 08/18/10 03:38 PM Re: SAFE Act Dani York, CRCM
Way Out West Offline
100 Club
Way Out West
Joined: Jun 2001
Posts: 246
San Francisco
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.
_________________________
The opinions expressed are mine and not those of my employer

Return to Top
#1430783 - 08/18/10 04:30 PM Re: SAFE Act Dani York, CRCM
QCL Offline

Power Poster
QCL
Joined: May 2002
Posts: 6,259
NW IL
Originally Posted By: Dani York
I'm not changing our SAFE Act policy unless the
Agencies issue new guidance.


Agreed.
_________________________

Return to Top
#1431047 - 08/18/10 08:54 PM Re: SAFE Act QCL
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,346
Cape Cod
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.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#1442087 - 09/13/10 06:31 PM Re: SAFE Act John Burnett
MB Guy Offline
10K Club
Joined: May 2004
Posts: 10,123
Way, way south.
Per Title X of the Frank Dodd Act, the compliance for Federal-related banking institutions has been pushed out to July 2011.
_________________________
Giddy up.

Return to Top
#1442375 - 09/14/10 01:54 PM Re: SAFE Act MB Guy
MB Guy Offline
10K Club
Joined: May 2004
Posts: 10,123
Way, way south.
Here is the excerpt from F-D:

Quote:

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
_________________________
Giddy up.

Return to Top
#1442526 - 09/14/10 03:29 PM Re: SAFE Act MB Guy
Irishguy Offline
Platinum Poster
Irishguy
Joined: Aug 2008
Posts: 569
Kentucky
On a related note, I received an email from BVS (our online training system) stating that policies and procedures must be in place by October 1, 2010. Is this true?

I've written a draft of our SAFE Act policies and procedures, but I was holding off on taking it to the Board until the registry was up and running. To me, it didn't make sense to take something to the Board if we aren't able to do anything yet. But a lot of this new legistation does not make sense. Do I need to make sure that the Board approves the policy prior to October 1, 2010? Any help is apprecaited.

Return to Top
#1442543 - 09/14/10 03:46 PM Re: SAFE Act Irishguy
Deena Offline
Power Poster
Deena
Joined: Nov 2000
Posts: 2,701
PA
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.
_________________________
Opinions expressed are mine and not necessarily those of my employer.

Return to Top
#1442544 - 09/14/10 03:46 PM Re: SAFE Act Irishguy
MB Guy Offline
10K Club
Joined: May 2004
Posts: 10,123
Way, way south.
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.
_________________________
Giddy up.

Return to Top
#1442692 - 09/14/10 05:52 PM Re: SAFE Act MB Guy
waldensouth Offline
Power Poster
waldensouth
Joined: Nov 2001
Posts: 7,973
FINALLY ABOVE the gnat line
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.
_________________________
"Once you learn to read, you will be forever free."

- Frederick Douglass




My Opinion Only.

Return to Top
#1442698 - 09/14/10 05:53 PM Re: SAFE Act waldensouth
#Just Jay Offline
10K Club
#Just Jay
Joined: Oct 2006
Posts: 14,389
Cheeseheadland
Ditto Waldensouth.
_________________________
I don't repeat gossip, so listen closely...

Return to Top
#1442743 - 09/14/10 06:16 PM Re: SAFE Act #Just Jay
Sinatra Fan Offline
Power Poster
Sinatra Fan
Joined: Jul 2002
Posts: 5,568
New Jersey
Ditto Waldensouth here, too.
_________________________
Management is doing things right; leadership is doing the right things. Peter Drucker

Return to Top
#1443214 - 09/15/10 03:27 PM Re: SAFE Act Sinatra Fan
CarolinaComplian Offline
Member
Joined: Mar 2010
Posts: 67
good ol south
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.

Return to Top
#1443501 - 09/15/10 07:36 PM Re: SAFE Act CarolinaComplian
MB Guy Offline
10K Club
Joined: May 2004
Posts: 10,123
Way, way south.
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.
_________________________
Giddy up.

Return to Top
#1443513 - 09/15/10 07:48 PM Re: SAFE Act MB Guy
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,423
Bloomington, IN
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.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#1443515 - 09/15/10 07:50 PM Re: SAFE Act Dan Persfull
Irishguy Offline
Platinum Poster
Irishguy
Joined: Aug 2008
Posts: 569
Kentucky
Thanks Dan for the clarification!

Return to Top
#1443516 - 09/15/10 07:51 PM Re: SAFE Act Irishguy
MB Guy Offline
10K Club
Joined: May 2004
Posts: 10,123
Way, way south.
Yes, thanks Dan, very valuable information.
_________________________
Giddy up.

Return to Top
#1443531 - 09/15/10 08:04 PM Re: SAFE Act MB Guy
NotDoneYet Offline
Gold Star
NotDoneYet
Joined: Jul 2010
Posts: 482
PA
Actually, the Federal Register on July 28, 2010 has the Oct. 1, 2010 deadline for policies and procedures.

Return to Top
#1443562 - 09/15/10 08:26 PM Re: SAFE Act NotDoneYet
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,423
Bloomington, IN
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.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#1443583 - 09/15/10 08:47 PM Re: SAFE Act Dan Persfull
NotDoneYet Offline
Gold Star
NotDoneYet
Joined: Jul 2010
Posts: 482
PA
I guess I tied it in with the OCC's release which states in part:

The final rule requires federal agency-regulated institutions, by October 1, 2010, to adopt written policies and procedures to assure compliance with the registration requirements. MLOs should direct inquiries about registration to their employing institutions.

I forget not everyone is OCC regulated.

Return to Top
#1443608 - 09/15/10 09:18 PM Re: SAFE Act NotDoneYet
Reads Regs Offline
Diamond Poster
Joined: Nov 2004
Posts: 2,285
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
_________________________
Opinions expressed are my own and not necessarily those of my employer. They are not legal advice.

Return to Top
#1443609 - 09/15/10 09:19 PM Re: SAFE Act Reads Regs
Irishguy Offline
Platinum Poster
Irishguy
Joined: Aug 2008
Posts: 569
Kentucky
Has the FDIC released a statement?

Return to Top
#1443610 - 09/15/10 09:20 PM Re: SAFE Act Dan Persfull
ahou Offline
Power Poster
ahou
Joined: Aug 2002
Posts: 3,094
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.
_________________________
Opinions are my own and not of my employer.

Return to Top
#1443637 - 09/15/10 09:56 PM Re: SAFE Act ahou
villenbe Offline
Member
Joined: Jun 2010
Posts: 96
Does this policy require board approval?

Return to Top
Page 1 of 2 1 2

Moderator:  Andy_Z