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House Votes to Amend SAFE Act

Writing on Paper BHThe U.S. House of Representatives unanimously passed the SAFE Transitional Licensing Act by voice vote. The bill could alter the way that mortgage loan officers at a federally-insured institution move to nonbank lenders.

The bill, H.R. 2121 SAFE Transitional License Act of 2015, would provide transitional licensing authority to originate mortgages for individuals who move from a federally-insured institution to a nonbank lender or from one state to another while they work to complete the SAFE Act's licensing and testing requirements.

The bill was introduced by Rep. Steve Stivers (R-Ohio) in April 2015 and is scheduled to receive a House vote this afternoon and will require a two-third majority vote. The bill was approved by the House Financial Services Committee at the first legislative markup this year in March.

Bank lending officers would be allowed to work at an independent mortgage bank or brokerage firm for 120 days while they complete the testing and background checks required to obtain a state license, according to Stivers. As of now, mortgage lenders must be registered in the National Mortgage Licensing System and Registry but they do not have to obtain a state license.

Stivers stated in April, "The SAFE Act inhibits job mobility and puts independent mortgage lenders at a considerable disadvantage in recruiting talented individuals."

"This is despite the fact that they have already been employed and registered as a loan officer. This is simply unfair."

Rep. Steve Stivers, R-Ohio

In 2008, Congress passed the Secure and Fair Enforcement (SAFE) for Mortgage Licensing Act. Its purpose was to ensure all lending officers could be tracked and held accountable, but pressure from the banking industry prompted lawmakers to exempt lending officers from SAFE Act requirements.

Stivers noted that when a loan officer transitions from a federally-insured institution to a nonbank lender, they are stagnant for weeks, or even months, while they meet the SAFE Act's licensing and testing requirement.

"This is despite the fact that they have already been employed and registered as a loan officer. This is simply unfair," Stivers noted.

National Association of Independent Housing Professionals (NAIHP) President Marc Savitt said in last year in an interview that the Stivers' bill will make it easier for lending officers to return to the brokerage business and that the organization "welcome[s] them back to the brokerage side."

 

About Author: Xhevrije West

Xhevrije West is a talented writer and editor based in Dallas, Texas. She has worked for a number of publications including The Syracuse New Times, Dallas Flow Magazine, and Bellwethr Magazine. She completed her Bachelors at Alcorn State University and went on to complete her Masters at Syracuse University.
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