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Regulators Propose Rule Changes For Mortgage Loan Officer Registration

In an attempt to bring greater transparency and accountability to the mortgage lending industry, federal regulators are ""proposing amendments"":http://www.occ.gov/ftp/release/2009-58a.pdf to the Secure and Fair Enforcement for Mortgage Licensing Act (S.A.F.E. Act) enacted in July of last year.
The S.A.F.E. Act requires residential mortgage loan originators who are employees of regulated financial institutions (including national and state banks, savings associations, credit unions, and Farm Credit System institutions) to register with the Nationwide Mortgage Licensing System and Registry database. As part of this registration process, mortgage loan originators must also provide background information and fingerprints. The S.A.F.E. Act prohibits employees of a regulated institution from making home loans unless they are part of this system.
The proposed amendments to the S.A.F.E. Act rule establish additional registration requirements for mortgage loan originators and require lending institutions to institute policies and procedures to ensure their employees are in compliance with the S.A.F.E. Act. The proposal also requires loan officers to obtain a unique identifier through the Registry that they will keep regardless of changes in employment. These permanent identifiers would be made available to consumers for verification of the officer's employment history and other background information.
These changes to the S.A.F.E. Act regulation have been issued jointly by the Office of the Comptroller of the Currency, Federal Reserve, FDIC, Office of Thrift Supervision, Farm Credit Administration, and National Credit Union Administration. The proposal has been submitted to the Federal Register and is opento public comment for 30 days at ""Regulations.gov"":http://www.regulations.gov.

About Author: Carrie Bay

Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English.

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