Highlights:
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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.
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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.
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The rule:
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tracks the SAFE Act definition of an MLO and provides examples of when a
person is or is not acting as an MLO;
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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);
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requires institutions and MLOs to provide certain information to the NMLSR,
including MLO fingerprints (to run a criminal background check);
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allows de minimis exceptions to the registration requirements for
low-volume MLOs;
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requires appropriate written policies and procedures for ensuring compliance
with the rule and establishes minimum standards for such policies and
procedures; and
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explains how an MLO's unique identifier must be disclosed.
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The draft final rule is publicly available and has been posted on the FDIC's Web
site at http://www.fdic.gov/news/board/2009nov12no8.pdf.
When finalized, this rule will be added as a new subpart B to Part 365 of the
FDIC's Rules and Regulations (12 C.F.R. Part 365).
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).
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