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114TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 114–62 

SAFE ACT CONFIDENTIALITY AND PRIVILEGE 

ENHANCEMENT ACT 

APRIL 13, 2015.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. HENSARLING, from the Committee on Financial Services, 

submitted the following 

R E P O R T 

[To accompany H.R. 1480] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Financial Services, to whom was referred the 

bill (H.R. 1480) to ensure access to certain information for financial 

services industry regulators, and for other purposes, having considered the same, report favorably thereon without amendment and 

recommend that the bill do pass. 

PURPOSE AND SUMMARY

H.R. 1480, the ‘‘SAFE Act Confidentiality and Privilege Enhancement Act,’’ amends the Secure and Fair Enforcement of Mortgage 

Licensing Act of 2008 (SAFE Act) to allow state and federal financial regulators to share information regarding consumer financial 

services businesses that are licensed at the state level in the Nationwide Mortgage Licensing System and Registry (NMLS or the 

System) without waiving any applicable privilege or confidentiality 

protections provided by state and federal law. 

BACKGROUND AND NEED FOR LEGISLATION

The NMLS was developed by state regulators in 2006 in order 

to help increase uniformity, reduce regulatory burden, enhance consumer protection, and reduce fraud by providing a single system for 

the licensing and registration of the nation’s mortgage industry. 

The System was originally created to allow states to track mortgage loan originators from state-to-state on a nationwide basis 

while keeping licensing and oversight authority at the state level. 


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Under current law, only mortgage regulators are permitted access 

to information provided by the NMLS. 

The Secure and Fair Enforcement for Mortgage Licensing Act 

(SAFE Act) was enacted on July 30, 2010, as part of the Housing 

and Economic Recovery Act of 2008 (P.L 110–289). The SAFE Act 

requires all mortgage loan originators to be licensed and registered 

through the NMLS. The SAFE Act also requires states to adopt 

minimum standards for licensing residential mortgage loan originators. 

Regulatory agencies in all 50 states, the District of Columbia, 

Puerto Rico and the Virgin Islands use the NMLS. Section 1512 of 

the SAFE Act (12 U.S.C. 5111(a)) provides that confidentiality and 

privilege protections arising under federal and state law applicable 

to information provided to the NMLS are not lost when shared 

among federal and state mortgage regulators. 

States license other types of consumer finance businesses. For 

example, many states license and regulate: 

1. Mortgages, including residential mortgage finance activities, 

underwriting, mortgage loan modifications, and commercial mortgage brokering or lending. 

2. Consumer Finance, including consumer lending, student lending, title lending, payday lending, and pawn brokering. 

3. Debt, including collections activities, credit counseling, and 

non-mortgage loan modifications. 

4. Money Services, including money transmitters, check cashers, 

prepaid card issuers, and currency exchange services. 

State regulators have begun using the NMLS as a licensing platform for regulating other non-depository financial service providers 

beyond residential mortgage providers to increase uniformity, reduce regulatory burden, enhance consumer protection and reduce 

fraud while ensuring privacy protections are maintained. As more 

state regulatory agencies—specifically state regulatory agencies 

that are not considered mortgage regulators—expand their use of 

NMLS with a broader range of licensees, greater assurance is needed that information provided to NMLS will not lose confidentiality 

and privilege protections when shared with these regulators. H.R. 

1480 would clarify that such information and material may be 

shared with all State and Federal regulatory officials with mortgage or financial services industry oversight authority without the 

loss of privilege or the loss of confidentiality protections provided 

by Federal and State laws. 

In a letter to the Committee dated March 24, 2015, the Conference of State Bank Supervisors stated its support for H.R. 1480, 

writing that it ‘‘support[s] state regulators’ expanded use of the Nationwide Multi-state Licensing System and Registry (NMLS) as a 

licensing and regulatory system without the loss of privilege or confidentiality protections provided by state and federal laws.’’ 

HEARINGS

The Committee on Financial Services did not hold hearings on 

H.R. 1480 in the 114th Congress. 


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COMMITTEE CONSIDERATION

The Committee on Financial Services met in open session on 

March 25, 2015 and March 26, 2015, and ordered H.R. 1480 to be 

reported favorably to the House without amendment by a recorded 

vote of 58 yeas to 0 nays (Record vote no. FC–18), a quorum being 

present. 

COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee to list the record votes on the motion 

to report legislation and amendments thereto. The sole vote in committee was a motion by Chairman Hensarling to report the bill favorably to the House without amendment. The motion was agreed 

to by a recorded vote of 58 yeas to 0 nays (Record vote no. FC–18), 

a quorum being present. 


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COMMITTEE OVERSIGHT FINDINGS

Pursuant to clause 3(c)(1) of rule XIII of the Rules of the House 

of Representatives, the findings and recommendations of the Committee, based on oversight activities under clause 2(b)(1) of rule X 

of the Rules of the House of Representatives, are incorporated in 

the descriptive portions of this report. 

PERFORMANCE GOALS AND OBJECTIVES

Pursuant to clause 3(c)(4) of rule XIII of the Rules of the House 

of Representatives, the Committee states that H.R. 1480 will ensure that state financial regulators who are not mortgage regulators can use the Nationwide Mortgage Licensing Sysem without 

weakening privilege and confidentiality protections applicable to information contained within the System. 

NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House of Representatives, the Committee adopts as its own the estimate of new budget authority, entitlement authority, or tax expenditures or revenues contained in the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

COMMITTEE COST ESTIMATE

The Committee adopts as its own the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

CONGRESSIONAL BUDGET OFFICE ESTIMATES

Pursuant to clause 3(c)(3) of rule XIII of the Rules of the House 

of Representatives, the following is the cost estimate provided by 

the Congressional Budget Office pursuant to section 402 of the 

Congressional Budget Act of 1974: 

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, April 6, 2015. 

Hon. JEB HENSARLING, 

Chairman, Committee on Financial Services, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 1480, the SAFE Act Confidentiality and Privilege Enhancement Act. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Susan Willie. 

Sincerely, 

KEITH HALL, 

Director. 

Enclosure. 


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H.R. 1480—SAFE Act Confidentiality and Privilege Enhancement 

Act 

H.R. 1480 would broaden the group of regulators authorized to 

share information submitted to the Nationwide Mortgage Licensing 

System and Registry (NMLSR) without losing privilege or confidentiality protections to include public officials that oversee the financial services industry. 

CBO estimates that enacting H.R. 1480 would increase direct 

spending; therefore, pay-as-you-go procedures apply. However, we 

expect those effects would be insignificant. CBO estimates that enacting H.R. 1480 would not affect revenues. Implementing the bill 

would not affect discretionary spending because the Bureau of Consumer Financial Protection (CFPB) is permanently authorized to 

spend amounts transferred from the Federal Reserve System. 

Under current law, the confidentiality of information submitted 

to the NMLSR, a system established by the S.A.F.E Mortgage Licensing Act (Public Law 110–289) to register all originators of 

mortgage loans, is protected by state and federal privacy laws. H.R. 

1480 would extend those protections to information that is shared 

with state or federal officials that oversee the mortgage industry. 

Based on information from the CFPB, CBO estimates that enacting H.R. 1480 could affect the agency’s workload and operating 

costs, but such effects would not be significant. 

H.R. 1480 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would 

impose no costs on state, local, or tribal governments. 

The CBO staff contact for this estimate is Susan Willie. The estimate was approved by Theresa Gullo, Assistant Director for Budget 

Analysis. 

FEDERAL MANDATES STATEMENT

The Committee adopts as its own the estimate of Federal mandates prepared by the Director of the Congressional Budget Office 

pursuant to section 423 of the Unfunded Mandates reform Act. 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act were created by this legislation. 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act. 

EARMARK IDENTIFICATION

H.R. 1480 does not contain any congressional earmarks, limited 

tax benefits, or limited tariff benefits as defined in clause 9 of rule 

XXI. 

DUPLICATION OF FEDERAL PROGRAMS

Pursuant to section 3(g) of H. Res. 5, 114th Cong. (2015), the 

Committee states that no provision of H.R. 1480 establishes or reVerDate Sep 11 2014 04:34 Apr 16, 2015 Jkt 049006 PO 00000 Frm 00006 Fmt 6659 Sfmt 6602 E:\HR\OC\HR062.XXX HR062

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authorizes a program of the Federal Government known to be duplicative of another Federal program, a program that was included 

in any report from the Government Accountability Office to Congress pursuant to section 21 of Public Law 111–139, or a program 

related to a program identified in the most recent Catalog of Federal Domestic Assistance. 

DISCLOSURE OF DIRECTED RULEMAKING

Pursuant to section 3(i) of H. Res. 5, 114th Cong. (2015), the 

Committee states that H.R. 1480 does not require any directed 

rulemakings. 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title 

This section cites H.R. 1480 as the ‘‘SAFE Act Confidentiality 

and Privilege Enhancement Act.’’ 

Section 2. Confidentiality of information shared between state and 

federal financial services regulators 

This section amends the SAFE Act to extend to state and federal 

regulatory officials having financial services oversight authority access to any information provided to the Nationwide Mortgage Licensing System and Registry (or any system established by the Director of the Consumer Financial Protection Bureau) without the 

loss of privilege or confidentiality protections provided by federal 

and state laws. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (new matter is printed in italic 

and existing law in which no change is proposed is shown in 

roman): 

S.A.F.E. MORTGAGE LICENSING ACT OF 2008 

* * * * * * * 

DIVISION A—HOUSING FINANCE 

REFORM 

* * * * * * * 

TITLE V—S.A.F.E. MORTGAGE 

LICENSING ACT 

* * * * * * * 

SEC. 1512. CONFIDENTIALITY OF INFORMATION. 

(a) SYSTEM CONFIDENTIALITY.—Except as otherwise provided in 

this section, any requirement under Federal or State law regarding 

the privacy or confidentiality of any information or material provided to the Nationwide Mortgage Licensing System and Registry 


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or a system established by the Director under section 1509, and 

any privilege arising under Federal or State law (including the 

rules of any Federal or State court) with respect to such information or material, shall continue to apply to such information or material after the information or material has been disclosed to the 

system. Such information and material may be shared with all 

State and Federal regulatory officials with mortgage or financial 

services industry oversight authority without the loss of privilege or 

the loss of confidentiality protections provided by Federal and State 

laws. 

(b) NONAPPLICABILITY OF CERTAIN REQUIREMENTS.—Information 

or material that is subject to a privilege or confidentiality under 

subsection (a) shall not be subject to— 

(1) disclosure under any Federal or State law governing the 

disclosure to the public of information held by an officer or an 

agency of the Federal Government or the respective State; or 

(2) subpoena or discovery, or admission into evidence, in any 

private civil action or administrative process, unless with respect to any privilege held by the Nationwide Mortgage Licensing System and Registry or the Director with respect to such 

information or material, the person to whom such information 

or material pertains waives, in whole or in part, in the discretion of such person, that privilege. 

(c) COORDINATION WITH OTHER LAW.—Any State law, including 

any State open record law, relating to the disclosure of confidential 

supervisory information or any information or material described 

in subsection (a) that is inconsistent with subsection (a) shall be 

superseded by the requirements of such provision to the extent 

State law provides less confidentiality or a weaker privilege. 

(d) PUBLIC ACCESS TO INFORMATION.—This section shall not 

apply with respect to the information or material relating to the 

employment history of, and publicly adjudicated disciplinary and 

enforcement actions against, loan originators that is included in 

Nationwide Mortgage Licensing System and Registry for access by 

the public. 

* * * * * * * 

Æ 


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