Financial Institution Letter
FIL-28-2009
June 3, 2009
Secure and Fair Enforcement for Mortgage Licensing Act of
2008
Joint Notice of Proposed Rulemaking
Summary:
The federal banking agencies, the National Credit Union Administration, and the Farm Credit
Administration (collectively, the Agencies) are seeking comment on the attached proposed rule
regarding the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act). Goals
of the SAFE Act include improving accountability and tracking of mortgage loan originators (MLOs),
enhancing consumer protection, reducing fraud, and providing consumers with easily accessible
information about the professional background of MLOs. Comments are due 30 days from the date
of publication in the Federal Register.
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:
Notice of Proposed Rulemaking, Subpart B 12 CFR
Part 365 Real Estate Lending Standards - PDF 655k
(PDF Help)
Contact:
Thomas F. Lyons, Examination Specialist, at (202) 898-
6850 or tlyons@fdic.gov, or Victoria Pawelski, 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/2009/index.html.
To receive FILs electronically, please
visit http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC financial institution letters may be
obtained via the FDIC's Public Information Center, 3501
Highlights:
The proposed rule is intended to implement the
requirements of Section 1507 of the SAFE Act pertaining to
Agency-regulated institutions, their subsidiaries and
employees acting as residential MLOs. The FDIC proposes
to add this rule as a new subpart B to the Part 365 Real
Estate Lending Standards. The proposed rule:
• tracks the SAFE Act's definition of an MLO and provides
examples of when a person is or is not acting as an
MLO;
• requires employees of Agency-regulated institutions and
their subsidiaries who act as MLOs to register with the
Nationwide Mortgage Licensing System and Registry
(NMLSR);
• specifies fingerprinting and background check
requirements;
• provides for de minimis exceptions to registration
requirements for low-volume MLOs;
• requires information from Agency-regulated institutions
and MLOs in order to register with the NMLSR;
• establishes minimum requirements for development and
implementation of appropriate written policies and
procedures; and
• explains how an MLO's unique identifier must be
disclosed and made public.Inactive
FIL-28-2009
June 3, 2009
Secure and Fair Enforcement for Mortgage Licensing Act of
2008
Joint Notice of Proposed Rulemaking
Summary:
The federal banking agencies, the National Credit Union Administration, and the Farm Credit
Administration (collectively, the Agencies) are seeking comment on the attached proposed rule
regarding the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act). Goals
of the SAFE Act include improving accountability and tracking of mortgage loan originators (MLOs),
enhancing consumer protection, reducing fraud, and providing consumers with easily accessible
information about the professional background of MLOs. Comments are due 30 days from the date
of publication in the Federal Register.
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:
Notice of Proposed Rulemaking, Subpart B 12 CFR
Part 365 Real Estate Lending Standards - PDF 655k
(PDF Help)
Contact:
Thomas F. Lyons, Examination Specialist, at (202) 898-
6850 or tlyons@fdic.gov, or Victoria Pawelski, 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/2009/index.html.
To receive FILs electronically, please
visit http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC financial institution letters may be
obtained via the FDIC's Public Information Center, 3501
Highlights:
The proposed rule is intended to implement the
requirements of Section 1507 of the SAFE Act pertaining to
Agency-regulated institutions, their subsidiaries and
employees acting as residential MLOs. The FDIC proposes
to add this rule as a new subpart B to the Part 365 Real
Estate Lending Standards. The proposed rule:
• tracks the SAFE Act's definition of an MLO and provides
examples of when a person is or is not acting as an
MLO;
• requires employees of Agency-regulated institutions and
their subsidiaries who act as MLOs to register with the
Nationwide Mortgage Licensing System and Registry
(NMLSR);
• specifies fingerprinting and background check
requirements;
• provides for de minimis exceptions to registration
requirements for low-volume MLOs;
• requires information from Agency-regulated institutions
and MLOs in order to register with the NMLSR;
• establishes minimum requirements for development and
implementation of appropriate written policies and
procedures; and
• explains how an MLO's unique identifier must be
disclosed and made public.Inactive
Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-
3342 or 703-562-2200).Inactive
3342 or 703-562-2200).Inactive