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NCUA
and Others Issue Proposed Rule Changes to the S.A.F.E. Act
The regulatory agencies working under the Federal
Financial Institutions Examinations Council (FFIEC)
were joined by the Farm
Credit Administration recently in proposing amendments to the Secure
and Fair Enforcement for Mortgage Licensing Act (the Act). The
Act requires an employee of an Agency-regulated institution who acts
as a residential mortgage loan originator to register with the
Nationwide Mortgage Licensing System and Registry (Registry), obtain
a unique identifier, and maintain this registration.
Highlights of Proposal
The National
Credit Union Administration (NCUA) is proposing to add new Part 761 – Registration of Residential Mortgage Loan Originators.
In this part the “Purpose” indicates that the objectives of the
registration include:
·
Aggregating and improving the flow of information to
and between regulators;
·
Providing increased accountability and tracking of
loan originators;
·
Enhancing member protections;
·
Reducing fraud in the residential mortgage loan
origination process; and
·
Providing members with information about loan
originators at no charge.
The proposal includes a common annual renewal
period defined as November 1 through December 31 of each year
[761.102(a)].
Mortgage loan originator is defined as an
individual who takes a residential mortgage loan application and
offers or negotiates terms of a residential mortgage loan for
compensation or gain. There are several exceptions to the definition
[761.102(b)(2).]
Section 761.103 details the requirement to
register, obtain a unique identifier, and maintain the registration
in accordance in accordance with the provisions of that section.
A credit union employee who is a mortgage
loan originator must complete an initial registration with the
Registry within 180 days from the date the NCUA provides public
notice that the Registry is accepting registration.
Credit unions that employ mortgage loan
originators must adopt and follow written policies and procedure
designed to assure compliance with Part 761. There are minimum
requirements included in 761.104.
Credit unions are required to make the unique
identifiers of its registered mortgage loan originators available to
members. The loan originators shall provide unique identifiers to
members upon request; before acting as a mortgage loan originator;
and through the originator’s initial written communication with a
member.
Appendix A provides examples of mortgage loan
originator activities.
Comments are due by August 10. The proposal
can be reviewed at http://edocket.access.gpo.gov/2009/pdf/E9-13058.pdf.
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