Alert May 01, 2012

CFPB Issues Guidance on Transitional Licensing under the SAFE Act

The CFPB issued a guidance bulletin clarifying issues relating to transitional licensing under the SAFE Act and Regulation H.  According to the CFPB, states are permitted to provide a transitional license to an individual with a mortgage loan originator license from another state, but states are prohibited from granting a transitional license for a registered loan originator who leaves a federally regulated financial institution to act as a loan originator while pursuing a state license. Click here for the related press release and here for the bulletin.