BUREAU OF CONSUMER FINANCIAL PROTECTION

PAPERWORK REDUCTION ACT SUBMISSION

INFORMATION COLLECTION REQUEST

SUPPORTING STATEMENT PART A

REGISTRATION OF MORTGAGE LOAN ORIGINATORS

(REGULATION G) 12 CFR 1007

(OMB CONTROL NUMBER: 3170-0005)

OMB TERMS OF CLEARANCE:

Not applicable. The Office of Management and Budget (OMB) did not provide Terms of 

Clearance when approved this information collection on June 11, 2012.

ABSTRACT: 

Regulation G implements the S.A.F.E. Act's federal registration requirement with respect 

to any covered financial institutions, and their employees who act as residential mortgage loan 

originators (MLOs), to register with the Nationwide Mortgage Licensing System and Registry, 

obtain a unique identifier, maintain this registration, and disclose to consumers the unique 

identifier. The rule also requires the covered financial institutions employing these MLOs to 

adopt and follow written policies and procedures to ensure their employees comply with these 

requirements and to disclose the unique identifiers of their MLOs.

A. JUSTIFICATION

1. Circumstances Necessitating the Data Collection

On June 9, 2009, the Office of the Comptroller of the Currency (OCC), the Board of 

Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation 

(FDIC), the Office of Thrift Supervision (OTS), the Farm Credit Administration (FCA), and the 

National Credit Union Administration (NCUA) (collectively, the Federal Registry Agencies) 

issued a joint proposed rule titled Registration of Mortgage Loan Originators (74 FR 27386). 

The rule implemented the Secure and Fair Enforcement for Mortgage Licensing Act (the 

S.A.F.E. Act), enacted June 30, 2008. The FDIC maintains this approval for this information 

collection under OMB Control number 3064-0171and the Federal Reserve board’s control 

number for this collection is 7100-0328. The OCC and NCUA previously maintained approval 

for this collection under OMB control numbers 1557-0243 and 3064-0171 respectively. The 

Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) amended a 

number of consumer financial protection laws, including the S.A.F.E. Act. In addition to minor 

amendments, the Dodd-Frank Act transferred certain rulemaking authority for the S.A.F.E. Act

to the CFPB, effective July 21, 2011, and also granted the Bureau rulemaking authority pursuant 

to the S.A.F.E. Act with respect to employees of institutions regulated by the Farm Credit 
Administration. The CFPB regulation implementing the S.A.F.E. Act, known as Regulation G, 

has been added to 12 CFR Part 1007.

Regulation G implements the S.A.F.E. Act's federal registration requirement with respect 

to any covered financial institutions, and their employees who act as residential mortgage loan 

originators (MLOs), to register with the Nationwide Mortgage Licensing System and Registry, 

obtain a unique identifier, maintain this registration, and disclose to consumers the unique 

identifier. The rule also requires the covered financial institutions employing these MLOs to 

adopt and follow written policies and procedures to ensure their employees comply with these 

requirements and to disclose the unique identifiers of their MLOs.

NMLSR was created by the Conference of State Bank Supervisors (CSBS) and the 

American Association of Residential Mortgage Regulators. It is operated by the State 

Regulatory Registry LLC, a wholly owned subsidiary of Conference of State Bank Supervisors. 

The S.A.F.E. Act provides that the objectives of this registration include aggregating and 

improving the flow of information to and between regulators; providing increased accountability 

and tracking of mortgage loan originators (MLOs); enhancing consumer protections; supporting 

anti-fraud measures; and providing consumers with easily accessible information at no charge 

regarding the employment history of, and publicly adjudicated disciplinary and enforcement 

actions against, MLOs. The information is used by employers to ascertain whether MLOs are 

prohibited from being hired due to violations of other financial statutory requirements, or in 

general whether an individual is fit for employment by the institution. The information is also 

used by consumers, as described above. Finally, Federal regulatory agencies use this information 

to ascertain whether employers are meeting the requirements of using this system’s information 

to make judgments on MLO hires; the information also gives agencies an improved means of 

tracking MLOs and taking appropriate action in cases of consumer harm.

2. Use of the Information

The data collected in the registry are described in more detail in 12 CFR Part 1007, as 

well as in the supplementary documents attached to this supporting statement, and include 

information and supporting documentation to the extent required by the registry. In particular, 

the information collected includes specific identifying information including name, home 

address, business contact information, social security number, gender, and date and place of 

birth; financial services-related employment history for the past ten years, including convictions 

and civil actions of the individual related to financial services-related activities; action orders

regarding breaches of trust, dishonesty, or unfair or unethical actions; suspensions of authority to 

act as an attorney, accountant, or state or Federal contractor; and fingerprints of the individual 

for use in criminal history background checks. The confidentiality of this information, except the 

information provided to the public, is secured by 12 USC 15111(a), which essentially extends 

any existing privacy protections provided by state or federal laws to the information submitted to 

NMLSR.

Part of the information is made available to general public, following S.A.F.E. Act's goal 

of providing consumers with information regarding individual MLO’s. In accordance with 12 
USC 15111(d), information available to the public includes: name, phone number, work address, 

employment history (including self-reported employment history not related to mortgage 

origination), currently held state licenses, as well as state regulatory actions, if any.

This information is submitted in electronic form from MLOs and their employers and 

reported to the Nationwide Mortgage Licensing System and Registry (NMLSR), a web-based 

system developed and maintained by the Conference of State Bank Supervisors and the 

American Association of Residential Mortgage regulators jointly through the State Regulatory 

Registry LLC. 

The information is used primarily by employers to ascertain whether MLOs are 

prohibited from being hired due to violations of other financial statutory requirements, or in 

general whether an individual is fit for employment by the institution. The information is also 

used by consumers, who are able to go onto the Consumer Access website for NMLSR and 

check the employment history and disciplinary records of MLOs, primarily in connection with 

one whom the consumer is considering using as an agent to obtain a mortgage. A secondary use 

is for Federal regulatory agencies to ascertain whether employers are meeting the requirements 

of using this system’s information to make judgments on MLO hires, and gives them an 

improved means of tracking MLOs and taking appropriate action in cases of consumer harm.

3. Use of Information Technology

Section 1502 of the S.A.F.E. Act (12 USC 5101) establishes the Nationwide Mortgage 

Licensing System and Registry, with a specific requirement that consumers have access to the 

Registry through the Internet. Although the Act does not specifically call for electronic means of 

registration, in practice all submissions of information collections are made using the web 

interface of the Nationwide Mortgage Licensing System and Registry, a web-based system 

developed and maintained by the State Regulatory Registry LLC. The electronic form is stored 

in a secured, centralized repository. 

4. Efforts to Identify Duplication

Substantially all of the information collected is not otherwise available.

5. Efforts to Minimize Burdens on Small Entities

This collection of information imposes on covered entities, regardless of size, only the 

minimum burden necessary to accomplish the program objectives discussed in Items 1 and 2. 

Though small entities will be required to take steps to ensure compliance with the rule, the rule 

does contain an exception from registration as a mortgage loan originator for an employee of any 

covered entity if, during the preceding 12 month period, the employee acted as a mortgage loan 

originator for 5 or fewer residential mortgage loans.

6. Consequences of Less Frequent Collection and Obstacles to Burden Reduction
Compliance with Regulation G requires timely registration, annual registration renewals 

and maintaining the accuracy of the information supplied. A less frequent collection will 

undermine the quality of information. Currently every effort is made to reduce the burden of 

information submission, such as batch processing for employers, as well as auto-completion of 

individual forms whereby an individual MLO needs to provide information only if material 

circumstances have changed. 

7. Circumstances Requiring Special Information Collection

Regulation G’s information collection components are consistent with the applicable 

guidelines contained in 5 CFR 1320.5(d)(2).

8. Consultation Outside the Agency

In accordance with 5 CFR §1320.8(d)(1), the Bureau has published a notice Federal 

Register allowing the public 60 days to comment on this proposed the extension (renewal) of this 

currently approved collection of information. Further and in accordance with 5 CFR 

§1320.5(a)(1)(iv), the Bureau will also publish a notice in the Federal Register allowing the 

public 30 days to comment on the submission of this information collection request to the Office 

of Management and Budget.

In addition, we have consulted with the Conference of State Bank Supervisors to confirm 

our understanding of the costs and counts relevant to the PRA burden of this regulation.

9. Payments or Gifts to Respondents

No payments or gifts are provided to respondents.

10. Assurances of Confidentiality

Generally, the confidentiality of information collected by the Registry is provided by 12 

USC 5111.

The respondents submit information directly into NMLSR, while CFPB obtains data from 

NMLSR under an MOU agreement with the State Regulatory Registry LLC, on organization that

maintains NMLSR. The current NMLSR user agreements and privacy policies can be found at 

http://mortgage.nationwidelicensingsystem.org/about/Pages/Policies.aspx. 

Whenever CFPB receives information obtained through NMLSR, CFPB shall treat the 

information in accordance with applicable federal law, including but not limited to the Bureau’s 

confidentiality rules, 12 C.F.R. Part 1070, and the federal laws and regulations that apply to 

federal agencies for the protection of privacy, confidentiality, security and integrity. 

The information collected under this information collection includes direct identifying 

personally identifiable information (PII) in order to meet objectives set by Regulation G. The 

NMLSR and the federal registry are authorized by the S.A.F.E. Act as amended by the DoddFrank Wall Street Reform and Consumer Protection Act, Pub. L. 111-203, Title X, Section 1100, 
codified at 12 U.S.C. § 5101 et seq. The CFPB.019 Nationwide Mortgage Licensing System & 

Registry, 77 FR 35359 System of Records Notice (SORN), and the Nationwide Mortgage 

Licensing System & Registry Privacy Impact Assessment (PIA) cover the use of administrative 

data. The SORNs and PIAs will be updated as appropriate, and details regarding information 

handling will be specified in individual submissions under this generic clearance.

This information collection implicates privacy concerns because a breach of 

confidentiality could result in an individual suffering harm. To reduce the risk of breaches of 

confidentiality, CFPB uses appropriate security controls to protect information in the database 

and disclosed to consumers. There is risk related to misuse of information collected. Misuse 

might involve secondary types of use that are incompatible with the purposes of the initial 

collection, or a use of the information that individuals do not understand or to which they have 

not provided consent. To reduce the risk of misuse, the CFPB minimizes access to PII based on 

the need-to-know basis. The Bureau treats the information received through NMLSR in a manner 

consistent with our confidentiality regulations, and all data and analyses are subject to legal and 

privacy review prior to their release. The Bureau also evaluates the potential privacy risk and 

harm to individuals relative to the authorized purpose, and vets any research proposals using 

these data to ensure that they serve an authorized purpose. Disclosure conducted under any 

studies using these data will be consistent with the Privacy Act and the E-Government Act. 

11. Justification for Sensitive Questions

Questions regarding prior misconduct are the most sensitive among the data that is being 

collected. However, answers to these questions are essential for meeting the objectives of 

Regulation G. This information is used by employers to ascertain whether certain MLOs are 

prohibited from being hired due to violations of other financial statutory requirements, or in 

general whether an individual is fit for employment by the institution. The information is also 

used by consumers to ascertain the trustworthiness of the MLO they are transacting with. Finally, 

Federal regulatory agencies use this information to ascertain whether employers are meeting the 

requirements of using this system’s information to make judgments on MLO hires.
12. Estimated Burden of Information Collection

The following table summarizes the burden related to information collections required by 

Regulation G from institutions and individual MLO’s. The counts of annual responses for each 

information collection are based on the actual records obtained from NMLSR. The average 

response time is based on interviews with industry experts. 

Information collection 

requirement

No. of 

Respondents

Annual 

Frequency

Annual 

Responses

Average 

Response 

Time (hrs.)

Annual 

Burden 

Hours

Hourly 

Rate1

Labor

Costs

CFPB 

share2

Federally registered 

institutions

Initial registration 139 1 139 3.00 417 $14.74 $6,147 0.0%3

New employee registration 3,180 20.474 65,099 0.02 1,085 $14.74 $15,993 61.0%

Annual renewal 10,566 1 10,566 0.50 5,283 $14.74 $77,871 1.4%5

Federally registered MLO's

Initial registration 78,543 1 78,543 2.75 215,993 $28.76 $6,211,966 61.0%

Joining an institution 65,099 1 65,099 0.30 19,530 $28.76 $561,674 61.0%

Annual renewal 398,492 1 398,492 0.50 199,246 $28.76 $5,730,315 61.0%

Summary

Total hours: 441,554 CFPB allocated hours 265,944

Total labor cost: $12,603,966 CFPB allocated labor cost $7,638,251

No. of respondents - institutions 10,566 CFPB respondents - institutions 147

No. of respondents - MLO's 398,492 CFPB respondents - MLOs 243,080

No. of respondents - total 409,058 CFPB respondents - total 243,227

The CFPB estimates that the total ongoing recordkeeping and disclosure costs for the 

market under Regulation G are 441,554 hours, implying the associated labor cost of 

$12,603,966. For purposes of PRA, the CFPB allocates to itself 267,494 hours, implying the 

associated labor cost of $7,635,487 dollars. The CFPB share in the total burden is calculated 

as follows.

According to the Dodd-Frank Act assignment of supervisory authority, CPPB is 

allocated burden for 147 depository institutions (116 depository institutions with total assets 

of more than $10 billion and 31 affiliates) over which CFPB has primary enforcement 

authority with respect to Regulation G. Working with data provided by the Conference of 

 1 Hourly rate labor costs are the median hourly wages from the Bureau of Labor and Statistics (BLS) for affected 

occupational groups. Occupational groups for the PRA burden of regulation G are defined as loan officers 

(http://www.bls.gov/ooh/business-and-financial/loan-officers.htm#tab-5) and information clerks 

(http://www.bls.gov/ooh/office-and-administrative-support/information-clerks.htm). 2 CFPB allocated labor hours and costs are calculated by multiplying the share by the totals

3 All CFPB institutions are already in the system

4 Represents the average number of new hires per institution each year. 5 Reflects 147 out of total 10,566 federally registered institutions that are supervised by CFPB 
State Bank Supervisors, we found that the share of individual federally registered MLO’s for 

these institutions is 61% of the overall market. We apply this share to the total burden to 

obtain the burden allocated to CFPB. 

13. Estimated Total Annual Cost Burden to Respondents or Recordkeepers

NMLSR collects processing fees from both institutions and individual MLO’s at various 

stages of the registration process and renewal. Using the available data and fee information, we 

calculate the approximate total cost to respondents, in the table below.

Description of costs Unit Cost Units Total Cost

Federally registered institutions

Initial registration fee $100 139 $13,900

Annual processing fee $100 10,566 $1,056,600

Federally registered MLO's

Initial registration fee $60 78,543 $4,712,580

Annual processing fee $30 398,492 $11,954,760

Change of employment fee $30 65,099 $1,952,970

Summary

Total cost: $19,690,810

CFPB share 61%

CFPB costs $11,928,701

The total annual non-labor cost burden to respondents is $19,690,810 dollars. Using the 

same methodology as in 12, the CFPB allocates 61% of the total non-labor cost burden to itself, 

amounting to $11,928,701.

14. Estimated Cost to the Federal Government

There are no additional costs to the Federal Government.
15. Program Changes or Adjustments

Total 

Respondents

Annual 

Responses 

Burden Hours Cost Burden 

(O & M)

Total Annual Burden

Requested 243,227 617,938 267,494 $11,928,701

Current OMB 

Inventory 180 33,656 15,183 $0

Difference (+/-) 243,047 584,282 252,311 $11,928,701

Program Change 0 $0

Discretionary 0 $0

New Statute 0 $0

Violation 0 $0

Adjustment 243,047 584,282 252,311 $11,928,701

The changes in burden and costs are the result of an improved methodology of 

calculating costs as opposed to any regulation change. In particular the Bureau realized that the 

previous estimates in inherited counted only the number of institutions responding to this 

information collection, and not also the individuals who are required to respond. Therefore the 

new requests should be seen as a more accurate representation of the true costs and burdens of 

Regulation G.

16. Plans for Tabulation, Statistical Analysis, and Publication 

The public will have access to information in the Registry about a MLO’s employment 

history, work address, state regulatory actions.

17. Display of Expiration Date

The OMB control number and expiration date associated with this PRA submission will 

be displayed on the Federal government’s electronic PRA docket at www.reginfo.gov, as well as 

in the Federal Register Notice of the submission. 

18. Exceptions to the Certification Requirement

The Bureau certifies that this collection of information is consistent with the requirements 

of 5 CFR 1320.9, and the related provisions of 5 CFR 1320.8(b)(3) and is not seeking an 

exemption to these certification requirements.

Note: The following paragraph applies to all of the collections of information in this submission:
An agency may not conduct or sponsor, and a person is not required to respond to, a collection of 

information unless the collection of information displays a valid OMB control number.