Compliance: CFPB issues FAQs on SAFE Act amendments
The Consumer Financial Protection Bureau (CFPB) has published four frequently asked questions about the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) of 2008, and the amendments made by enactment of S. 2155. These amendments are effective Nov. 24, and details can be found in a recent CUNA CompBlog entry.
S. 2155 permits state-licensed mortgage loan originators (MLOs) licensed in one state to temporarily work in another state while waiting for licensing approval in the new state, if certain conditions are met.
It also provides registered MLOs who move from a credit union (or other depository institution) to a non-depository institution a grace period to complete the state's licensing requirements.
The questions fall into two categories:
- Types of loan originators:
- What are the categories of loan originators in the SAFE Act?
- Where can loan originators exercise temporary authority?
- State Transitional Licenses:
- What is the bureau’s guidance regarding state transitional license availability under the SAFE Act?
- Does S. 2155 impact the status of state transitional licenses under the SAFE Act?
The CFPB notes that reviewing these questions and answers is not a substitute for reviewing the SAFE Act, Regulation G or Regulation H, which the CFPB says are the “definitive sources of information regarding the requirements.”