S. 2595 would create a national licensing system for residential mortgage loan originators, and it would develop minimum standards of conduct to be enforced by State regulators.
Detailed Summary
Secure and Fair Enforcement for Mortgage Licensing Act of 2008, or S.A.F.E. Mortgage Licensing Act of 2008 - Encourages the states to establish a Nationwide Mortgage Licensing System and Registry for the residential mortgage industry through the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators.
Sets forth procedures, requirements (including education and testing), and standards for mandatory registration and state licensing of mortgage loan originators.
Requires the federal banking agencies jointly, through the Federal Financial Institutions Examination Council, to develop and maintain a system for registering depository institiution employees as registered loan originators with the Registry.
Directs the Secretary of Housing and Urban Development (HUD) to establish and maintain a backup licensing and registration system for loan originators operating in a state that either: (1) does not, after a certain period of time, have a licensing and registering system for loan originators that meets the requirements of this Act; or (2) does not participate in the Registry.
Requires the HUD Secretary also to establish and maintain a backup licensing, supervisory, and tracking system for loan originators if the Registry is failing to meet the requirements and purposes of this Act.
Declares that this Act does not preempt state law which provides greater protection to consumers than is provided under this Act.
Directs the HUD Secretary to study and report to Congress on the root causes of default and foreclosure of home loans.
Status of the Legislation
Latest Major Action: 2/6/2008: Referred to Senate committee. Status: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Points in Favor
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Points Against
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Visitor Comments
Rena Starks
July 14, 2008, 11:20am (report abuse)This bill pre-empts the States Rights. This bill will change the current income of the State/s that the licensing process generates. It is possible this bill will change the face of protection and justice that consumers seek but cannot receive today.
We will need legal and executive help out of this one!
Tim
September 10, 2008, 12:19am (report abuse)this bill also will displace mortgage originators whom had made a mistake in their younger days. But, are assets to society today.
Gus
October 31, 2008, 1:59pm (report abuse)where will you find loan officers today with a clean credit history as requiered by this Act.
Mark
December 1, 2008, 6:14pm (report abuse)There are many Loan Originators currently licensed by the DRE and have to go through continuing education. Do the 10's of thousands of Loan Originators working under the Dept. of Corporations have to then get licensed. Without the formal education/ethics and pushed by their management many consumers have been placed into loans that they should have never taken.
Jim
January 6, 2009, 4:40am (report abuse)I have originated loans for 8 years with letters of recommendation from both employers and clients. Yet for a mistake TOTALLY unrelated to my field, Congress finds me unqualified?