SAFE Act
Posted by Sarah Loats
The SAFE Act is here, but the Registry is not. That is to say, the Registry is not available for registration of employees of credit unions. Once it is, the NCUA and other federal banking agencies will release a public announcement and once that announcement is out credit unions and their employees will have 180 days to register.
Credit unions will want to know "who has to register". Well, it depends on who in the credit union fits the definition of a mortgage loan originator, and Appendix A is probably your best resource for determining who needs to register. It provides examples of what constitutes "taking an application" and "offering or negotiating loan terms." You can find Appendix A towards the end of the rule.
Of note, be ready to pay fees for registering. The costs of maintaining the Registry will likely be passed on to credit unions and banks and mortgage loan originators. The final rule provides:
"Section 1510 of the S.A.F.E. Act (12 U.S.C. 5109), expressly authorizes the Registry to "charge reasonable fees to cover the costs of maintaining and providing access to information from the [Registry], to the extent that such fees are not charged to consumers for access to such [Registry]." We anticipate that the Registry will charge fees for registration, change in employment, renewal, and fingerprint processing and background checks. Although some commenters specifically requested information on the anticipated costs associated with registering with the Registry, the Agencies are at this time unable to provide this information as the fees have yet to be established by CSBS and SRR. The Agencies are consulting with the CSBS and SRR regarding the fees that the Registry expects to impose. One commenter specifically asked the Agencies to grant Agency-regulated institutions the opportunity to comment on fees. CSBS has indicated that it intends to provide an opportunity for the public to comment on these fees, and any future adjustments to such fees, before their imposition on Federal registrants and/or their employing institutions.41"
For more information, NAFCU has issued its Final Regulation on the rule and the June Compliance Monitor has an article on the SAFE Act (member log-in required).