Alert June 02, 2009

Federal Banking Agencies Issue Joint Notice of Proposed Rulemaking Regarding the SAFE Act

The federal banking agencies issued a joint notice of proposed rulemaking seeking to amend their regulations to implement the Secure and Fair Enforcement for Mortgage Licensing Act of 2008. The proposal implements the portion of the Act requiring any bank employees acting as residential mortgage loan originators to register with and obtain a unique identifier from the Nationwide Mortgage Licensing System. The agencies are specifically requesting comment on whether the de minimus exception of 25 or fewer mortgage loan originations is appropriate. The agencies are also specifically requesting comment on whether the definition of “mortgage loan originator” should cover individuals who (1) modify existing residential mortgage loans; (2) engage in approving mortgage loan assumptions, (3) engage in certain refinancing transactions, and (4) engage in loan modification and limited refinancing activities. Comments are due within 30 days of publication in the Federal Register. Click here for a copy of the proposal.