HUD issued guidance on how it will interpret state compliance with the SAFE Mortgage Licensing Act. The SAFE Mortgage Licensing Act requires state licensure or registration of loan originators. The guidance indicates that HUD has reviewed the state model bill prepared by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators and concluded that states adopting that bill will be in compliance with the SAFE Mortgage Licensing Act requirements. The guidance also includes a broad interpretation of the SAFE Mortgage Licensing Act definition of “loan originator.” Click here for the guidance and here for the state model bill.
Alert January 13, 2009