Financial Institution Letter
FIL-64-2009
November 13, 2009
Secure and Fair Enforcement for Mortgage Licensing Act of
2008 – Final Rule
Registration of Residential Mortgage Loan Originators (Part 365, Subpart B)
Summary:
The FDIC Board of Directors has approved the attached draft final rule implementing the Secure and Fair Enforcement
for Mortgage Licensing Act of 2008 (SAFE Act). The rule has been posted on the FDIC's Web site, but will not be
published in the Federal Register until the other agencies involved in this rulemaking complete their review and
approval of the rule. To the extent there are differences between the attached draft final rule and the version ultimately
published by the agencies in the Federal Register, the FDIC will highlight those changes in a revised Financial
Institutions Letter at the time of publication.
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:
Draft Final Rule, Subpart B to 12 CFR Part 365 Real
Estate Lending Standards - PDF 2.72 MB (PDF Help)
Contact:
Thomas F. Lyons, 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/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
Fairfax Drive, E-1002,
Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).
Highlights:
• The SAFE Act improves the accountability and tracking
of residential mortgage loan originators (MLOs),
enhances consumer protection, reduces fraud, and
provides consumers with easily accessible information
regarding the professional background of MLOs.
• The rule will implement the requirements of Section
1507 of the SAFE Act and will apply 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 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 employees of insured state
nonmember banks and their subsidiaries who
act as MLOs to register with the Nationwide
Mortgage Licensing System and Registry
(NMLSR);
o requires institutions and MLOs to provide
certain information to the NMLSR, including
MLO fingerprints (to run a criminal background
check);
o allows 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 establishes minimum standards for
such policies and procedures; and
o explains how an MLO's unique identifier must
be disclosed.
• The draft final rule is publicly available and has been
posted on the FDIC's Web siteInactive
FIL-64-2009
November 13, 2009
Secure and Fair Enforcement for Mortgage Licensing Act of
2008 – Final Rule
Registration of Residential Mortgage Loan Originators (Part 365, Subpart B)
Summary:
The FDIC Board of Directors has approved the attached draft final rule implementing the Secure and Fair Enforcement
for Mortgage Licensing Act of 2008 (SAFE Act). The rule has been posted on the FDIC's Web site, but will not be
published in the Federal Register until the other agencies involved in this rulemaking complete their review and
approval of the rule. To the extent there are differences between the attached draft final rule and the version ultimately
published by the agencies in the Federal Register, the FDIC will highlight those changes in a revised Financial
Institutions Letter at the time of publication.
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:
Draft Final Rule, Subpart B to 12 CFR Part 365 Real
Estate Lending Standards - PDF 2.72 MB (PDF Help)
Contact:
Thomas F. Lyons, 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/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
Fairfax Drive, E-1002,
Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).
Highlights:
• The SAFE Act improves the accountability and tracking
of residential mortgage loan originators (MLOs),
enhances consumer protection, reduces fraud, and
provides consumers with easily accessible information
regarding the professional background of MLOs.
• The rule will implement the requirements of Section
1507 of the SAFE Act and will apply 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 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 employees of insured state
nonmember banks and their subsidiaries who
act as MLOs to register with the Nationwide
Mortgage Licensing System and Registry
(NMLSR);
o requires institutions and MLOs to provide
certain information to the NMLSR, including
MLO fingerprints (to run a criminal background
check);
o allows 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 establishes minimum standards for
such policies and procedures; and
o explains how an MLO's unique identifier must
be disclosed.
• The draft final rule is publicly available and has been
posted on the FDIC's Web siteInactive