Financial Institution Letter
FIL-43-2010
July 30, 2010
Secure and Fair Enforcement for Mortgage Licensing Act of 2008
Notice of Joint Final Rule: Registration of Residential Mortgage Loan Originators
Summary: The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the
Federal Deposit Insurance Corporation, the Office of Thrift Supervision, the Farm Credit Administration, and the
National Credit Union Administration published in the Federal Register the attached joint final rule implementing the
Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) on July 28, 2010. The rule takes effect on
October 1, 2010, and institutions will be expected to implement appropriate policies, procedures and management
systems to ensure compliance. Applicable mortgage loan originators (MLOs) must register with the Nationwide
Mortgage Licensing System and Registry (NMLSR) within 180 days of the date the NMLSR can begin accepting
registrations, which could be as soon as January 28, 2011. The FDIC will provide advance notice of the exact date.
Distribution:
FDIC-Supervised Banks (Commercial and
Savings)
Suggested Routing:
Chief Executive Officer
Chief Credit Officer
Compliance Officer
Related Topics:
The Secure and Fair Enforcement for Mortgage
Licensing Act of 2008
Attachment:
Final Rule, Subpart B to 12 CFR Part 365, Real
Estate Lending Standards
http://edocket.access.gpo.gov/2010/pdf/2010-
18148.pdf
Contact:
Thomas F. Lyons, Senior Examination Specialist,
at (202) 898-6850 or tlyons@fdic.gov; or Victoria
Pawelski, Senior Policy Analyst (Compliance),
at vpawelski@fdic.gov or (202) 898-3571
Note:
FDIC financial institution letters (FILs) may be
accessed from the FDIC's Web site
at www.fdic.gov/news/news/financial/2010/
index.html.
To receive FILs electronically, please
visit http://www.fdic.gov/about/subscriptions
/fil.html.
Highlights:
• The SAFE Act is intended to improve the accountability and
tracking of residential MLOs, enhance consumer protection,
reduce fraud and provide consumers with easily accessible
information regarding an MLO's professional background.
• The final rule implements the requirements of Section 1507 of
the SAFE Act applicable to insured state nonmember banks
(including state-licensed insured branches of foreign banks),
their subsidiaries, and employees of such banks or subsidiaries
who act as MLOs.
• The final rule will be codified as a new subpart B to Part 365 of
the FDIC's Rules and Regulations (12 C.F.R. Part 365),
available
at: http://www.fdic.gov/news/news/press/2010/pr10170a.pdf.
• The rule:
o tracks the SAFE Act definition of an MLO and provides
examples of when a person is or is not acting as an
MLO;
o requires MLOs employed by insured state nonmember
banks and their subsidiaries to register with the
NMLSR;
o requires institutions and MLOs to provide certain
information to the NMLSR, including MLO fingerprints
(to run a criminal background check);
o includes de minimis exceptions to the registration
requirements for low-volume MLOs;
o requires appropriate written policies and procedures for
ensuring compliance with the rule and establishesInactive
FIL-43-2010
July 30, 2010
Secure and Fair Enforcement for Mortgage Licensing Act of 2008
Notice of Joint Final Rule: Registration of Residential Mortgage Loan Originators
Summary: The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the
Federal Deposit Insurance Corporation, the Office of Thrift Supervision, the Farm Credit Administration, and the
National Credit Union Administration published in the Federal Register the attached joint final rule implementing the
Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) on July 28, 2010. The rule takes effect on
October 1, 2010, and institutions will be expected to implement appropriate policies, procedures and management
systems to ensure compliance. Applicable mortgage loan originators (MLOs) must register with the Nationwide
Mortgage Licensing System and Registry (NMLSR) within 180 days of the date the NMLSR can begin accepting
registrations, which could be as soon as January 28, 2011. The FDIC will provide advance notice of the exact date.
Distribution:
FDIC-Supervised Banks (Commercial and
Savings)
Suggested Routing:
Chief Executive Officer
Chief Credit Officer
Compliance Officer
Related Topics:
The Secure and Fair Enforcement for Mortgage
Licensing Act of 2008
Attachment:
Final Rule, Subpart B to 12 CFR Part 365, Real
Estate Lending Standards
http://edocket.access.gpo.gov/2010/pdf/2010-
18148.pdf
Contact:
Thomas F. Lyons, Senior Examination Specialist,
at (202) 898-6850 or tlyons@fdic.gov; or Victoria
Pawelski, Senior Policy Analyst (Compliance),
at vpawelski@fdic.gov or (202) 898-3571
Note:
FDIC financial institution letters (FILs) may be
accessed from the FDIC's Web site
at www.fdic.gov/news/news/financial/2010/
index.html.
To receive FILs electronically, please
visit http://www.fdic.gov/about/subscriptions
/fil.html.
Highlights:
• The SAFE Act is intended to improve the accountability and
tracking of residential MLOs, enhance consumer protection,
reduce fraud and provide consumers with easily accessible
information regarding an MLO's professional background.
• The final rule implements the requirements of Section 1507 of
the SAFE Act applicable to insured state nonmember banks
(including state-licensed insured branches of foreign banks),
their subsidiaries, and employees of such banks or subsidiaries
who act as MLOs.
• The final rule will be codified as a new subpart B to Part 365 of
the FDIC's Rules and Regulations (12 C.F.R. Part 365),
available
at: http://www.fdic.gov/news/news/press/2010/pr10170a.pdf.
• The rule:
o tracks the SAFE Act definition of an MLO and provides
examples of when a person is or is not acting as an
MLO;
o requires MLOs employed by insured state nonmember
banks and their subsidiaries to register with the
NMLSR;
o requires institutions and MLOs to provide certain
information to the NMLSR, including MLO fingerprints
(to run a criminal background check);
o includes de minimis exceptions to the registration
requirements for low-volume MLOs;
o requires appropriate written policies and procedures for
ensuring compliance with the rule and establishesInactive
Paper copies of FDIC financial institution letters
may be obtained via the FDIC's Public
Information Center, 3501 Fairfax Drive, E-1002,
Arlington, VA 22226 (1-877-275-3342 or 703-
562-2200).
minimum standards for such policies and procedures;
and
o explains how an MLO's unique identifier must be
disclosed.
• The NMLSR is being modified to accept registrations required
by this rule. That functionality could be available as soon as
January 28, 2011.
• The NMLSR is expected to include a batch-upload capability to
facilitate the registration of multiple MLOs.
• The NMLSR system operators expect to provide information on
registration operations, logistics and training under the Federal
Registration tab of the NMLSR Web site
at: http://mortgage.nationwidelicensingsystem.org/Pages/defaul
t.aspx.Inactive
may be obtained via the FDIC's Public
Information Center, 3501 Fairfax Drive, E-1002,
Arlington, VA 22226 (1-877-275-3342 or 703-
562-2200).
minimum standards for such policies and procedures;
and
o explains how an MLO's unique identifier must be
disclosed.
• The NMLSR is being modified to accept registrations required
by this rule. That functionality could be available as soon as
January 28, 2011.
• The NMLSR is expected to include a batch-upload capability to
facilitate the registration of multiple MLOs.
• The NMLSR system operators expect to provide information on
registration operations, logistics and training under the Federal
Registration tab of the NMLSR Web site
at: http://mortgage.nationwidelicensingsystem.org/Pages/defaul
t.aspx.Inactive