PA PAsses SAFE

STATE ISSUES

Additional States Pass SAFE Act Legislation. North Carolina and Pennsylvania recently joined the list of states that have enacted legislation to effect the requirements of the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act). North Carolina HB 1523 and Pennsylvania HB 1654 require mortgage loan originators to, among other things, register with the Nationwide Mortgage Licensing System (NMLS), complete pre-license testing and education, submit to fingerprinting for the purpose of a criminal history background check, and pass a qualified written exam developed by the NMLS. North Carolina HB 1523 became effective July 31, 2009, with mortgage loan originator licensure required by July 31, 2010 (for "exclusive mortgage brokers") or by December 31, 2009 (for "limited loan officers"). Pennsylvania HB 1654 became effective immediately. Individuals not currently licensed as mortgage originators must file an application for a mortgage originator license by October 4, 2009 (60 days after the effective date). Mortgage originators previously licensed must complete the required education and testing requirements by December 31, 2009. For a copy of North Carolina HB 1523, please see http://www.ncga.state.nc.us/Sessions/2009/Bills/House/PDF/H1523v6.pdf
PAP

How does this impact a community bank in PA? Do our lenders need to acquire licenses/certification?

I believe the state legislation exempts mortgage loan originators who work for federally regulated depository institutions since they will be required to comply with the federal SAFE Act.

Act 31 of 2009 (PA House BIll 1654) was signed into law 8/5/09. It amends PA's existing mortgage licensing law. The PA Department of Banking issued a letter summarizing the requirements of the act as revised.

As noted the Mortgage Licensing Act licensing requirements do not apply to regulated banking institutions. However, "their employed mortgage originators must register (not license) through NMLSR according to regulations to be issued by federal regulatory agencies."


This letter is available at www.banking.state.pa.us/banking/cwp


08/05/09
SAFE Act Legislation
The letter provides information regarding Act 31 of 2009, House Bill 1654 (P.N. 2448), which amends Pennsylvania’s existing mortgage industry licensing law, 7 Pa.C.S. Chapter 61, in order to implement the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (the “SAFE Act”), 12 U.S.C. § 5101 et seq. Learn more...

Thanks for posting the documentation to support my response. I didn't have time to look it up when I posted.

Vig,
Can you send me that letter? The link in your post doesn't work and I cannot seem to find it on the State's website.
thank you.

We are a financial institution regulated by the OCC. We have to register (not license). However the website used for registrations (again not licensing) is not up and functioning yet to the best of my knowledge.