The SAFE Act provides that the registration requirements do not apply to an employee of the bank who has never been registered as a MLO and who has acted as a MLO for 5 or fewer residential mortgage loans during the last 12 months.

Will that 12-month period begin once the registry is open? For example, we have some ag/commercial lenders that could have made more than 5 residential mortgage loans in 2010 but starting in 2011 will not make any residential mortgage loans and therefore we do not plan to register. Or would the 12-month period start from 10/1/10 - when the SAFE Act became effective?

Thanks!

Valley Girl,

The Federal Register states the De minimis exception can apply "if during the past 12 months the employee acted as a mortgage loan originator for 5 or fewer residential mortgage loans." Additionally the Register states "Prior to engaging in mortgage loan origination activity that exceeds the exception limit...(the) bank employee must register with the Registry pursuant to this subpart."

Therefore, I interpret this to be a rolling 12 month period meaning that at any given time (after the effective date which is six months after the registry opens) a non-MLO cannot originate more than 5 mortgage loans during any 12 month period.

Hope that helps.

If they will not be making (or handling) residential loans starting in 2011, you would not have to register them because they handled them in the past 12 months (whether counting from the beginning of the registry or not).

I agree that counting for those that will continue to handle residential loans appears to be on a rolling 12 month basis.

Thank you both!