September 26, 2019

CFPB releases FAQs on S. 2155 mortgage licensing provision

CFPBThe CFPB Wednesday released four questions and answers to help financial institutions comply with amendments made to the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) by the Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155).

The amendments were made in an attempt to eliminate barriers to jobs for loan originators. They describe an individual's temporary authority to originate loans for a state-licensed loan originator, such as a credit union that is licensed or registered under state law to engage in residential mortgage loan originations and processing activities.

In NAFCU's S. 2155 summary guide, the association notes that this section applies indirectly to credit unions to the extent that it provides additional flexibility when hiring mortgage loan originators.

The CFPB's FAQs address types of loan originators and state transitional licenses, specifically:

  • what categories of loan originators are in the SAFE Act;
  • where loan originators can exercise temporary authority;
  • the bureau's guidance regarding state transitional license availability under the SAFE Act; and
  • whether S. 2155 impacts the status of state transitional licenses under the SAFE Act.

Access the FAQs; NAFCU will continue to keep credit unions updated as regulators implement and offer insights into their respective provisions of S. 2155.