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[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1753 Introduced in Senate (IS)]

<DOC>

115th CONGRESS
  1st Session
                                S. 1753

   To amend the S.A.F.E. Mortgage Licensing Act of 2008 to provide a 
temporary license for loan originators transitioning between employers, 
                        and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             August 3, 2017

  Mr. Heller (for himself and Mr. Menendez) introduced the following 
 bill; which was read twice and referred to the Committee on Banking, 
                       Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL

 
   To amend the S.A.F.E. Mortgage Licensing Act of 2008 to provide a 
temporary license for loan originators transitioning between employers, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``SAFE Transitional License Act''.

SEC. 2. ELIMINATING BARRIERS TO JOBS FOR LOAN ORIGINATORS.

    (a) In General.--The S.A.F.E. Mortgage Licensing Act of 2008 (12 
U.S.C. 5101 et seq.) is amended by adding at the end the following:

``SEC. 1518. EMPLOYMENT TRANSITION OF LOAN ORIGINATORS.

    ``(a) Temporary Authority To Originate Loans for Loan Originators 
Moving From a Depository Institution to a Non-Depository Institution.--
            ``(1) In general.--Upon employment by a State-licensed 
        mortgage company, an individual who is a registered loan 
        originator shall be deemed to have temporary authority to act 
        as a loan originator in an application State for the period 
        described in paragraph (2) if the individual--
                    ``(A) has not had an application for a loan 
                originator license denied, or had such a license 
                revoked or suspended in any governmental jurisdiction;
                    ``(B) has not been subject to or served with a 
                cease and desist order in any governmental jurisdiction 
                or as described in section 1514(c);
                    ``(C) has not been convicted of a felony that would 
                preclude licensure under the law of the application 
                State;
                    ``(D) has submitted an application to be a State-
                licensed loan originator in the application State; and
                    ``(E) was registered in the Nationwide Mortgage 
                Licensing System and Registry as a loan originator 
                during the 12-month period preceding the date of 
                submission of the information required under section 
                1505(a).
            ``(2) Period.--The period described in this paragraph shall 
        begin on the date on which the individual submits the 
        information required under section 1505(a) and shall end on the 
        earliest of--
                    ``(A) the date on which the individual withdraws 
                the application to be a State-licensed loan originator 
                in the application State;
                    ``(B) the date on which the application State 
                denies, or issues a notice of intent to deny, the 
                application;
                    ``(C) the date on which the application State 
                grants a State license; or
                    ``(D) the date that is 120 days after the date on 
                which the individual submits the application, if the 
                application is listed on the Nationwide Mortgage 
                Licensing System and Registry as incomplete.
    ``(b) Temporary Authority To Originate Loans for State-Licensed 
Loan Originators Moving Interstate.--
            ``(1) In general.--A State-licensed loan originator shall 
        be deemed to have temporary authority to act as a loan 
        originator in an application State for the period described in 
        paragraph (2) if the State-licensed loan originator--
                    ``(A) meets the requirements of subparagraphs (A), 
                (B), (C), and (D) of subsection (a)(1);
                    ``(B) is employed by a State-licensed mortgage 
                company in the application State; and
                    ``(C) was licensed in a State that is not the 
                application State during the 30-day period preceding 
                the date of submission of the information required 
                under section 1505(a) in connection with the 
                application submitted to the application State.
            ``(2) Period.--The period described in this paragraph shall 
        begin on the date on which the State-licensed loan originator 
        submits the information required under section 1505(a) in 
        connection with the application submitted to the application 
        State and end on the earliest of--
                    ``(A) the date on which the State-licensed loan 
                originator withdraws the application to be a State-
                licensed loan originator in the application State;
                    ``(B) the date on which the application State 
                denies, or issues a notice of intent to deny, the 
                application;
                    ``(C) the date on which the application State 
                grants a State license; or
                    ``(D) the date that is 120 days after the date on 
                which the State-licensed loan originator submits the 
                application, if the application is listed on the 
                Nationwide Mortgage Licensing System and Registry as 
                incomplete.
    ``(c) Applicability.--
            ``(1) Employer of loan originators.--Any person employing 
        an individual who is deemed to have temporary authority to act 
        as a loan originator in an application State pursuant to this 
        section shall be subject to the requirements of this title and 
        to applicable State law to the same extent as if such 
        individual was a State-licensed loan originator licensed by the 
        application State.
            ``(2) Engaging in mortgage loan activities.--Any individual 
        who is deemed to have temporary authority to act as a loan 
        originator in an application State pursuant to this section and 
        who engages in residential mortgage loan origination activities 
        shall be subject to the requirements of this title and to 
        applicable State law to the same extent as if such individual 
        was a State-licensed loan originator licensed by the 
        application State.
    ``(d) Definitions.--In this section, the following definitions 
shall apply:
            ``(1) Application state.--The term `application State' 
        means a State in which a registered loan originator or a State-
        licensed loan originator seeks to be licensed.
            ``(2) State-licensed mortgage company.--The term `State-
        licensed mortgage company' means an entity licensed or 
        registered under the law of any State to engage in residential 
        mortgage loan origination and processing activities.''.
    (b) Table of Contents Amendment.--The table of contents in section 
1(b) of the Housing and Economic Recovery Act of 2008 (42 U.S.C. 4501 
note) is amended by inserting after the item relating to section 1517 
the following:

``Sec. 1518. Employment transition of loan originators.''.
    (c) Effective Date.--This section and the amendments made by this 
section shall take effect on the date that is 18 months after the date 
of enactment of this Act.
                                 <all>
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