II 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘SAFE Transitional 

5 License Act’’. 

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1 SEC. 2. ELIMINATING BARRIERS TO JOBS FOR LOAN ORIGI2 NATORS. 

3 (a) IN GENERAL.—The S.A.F.E. Mortgage Licensing 

4 Act of 2008 (12 U.S.C. 5101 et seq.) is amended by add5 ing at the end the following: 

6 ‘‘SEC. 1518. EMPLOYMENT TRANSITION OF LOAN ORIGINA7 TORS. 

8 ‘‘(a) TEMPORARY AUTHORITY TO ORIGINATE LOANS

9 FOR LOAN ORIGINATORS MOVING FROM A DEPOSITORY

10 INSTITUTION TO A NON-DEPOSITORY INSTITUTION.— 

11 ‘‘(1) IN GENERAL.—Upon employment by a 

12 State-licensed mortgage company, an individual who 

13 is a registered loan originator shall be deemed to 

14 have temporary authority to act as a loan originator 

15 in an application State for the period described in 

16 paragraph (2) if the individual— 

17 ‘‘(A) has not had an application for a loan 

18 originator license denied, or had such a license 

19 revoked or suspended in any governmental ju20 risdiction; 

21 ‘‘(B) has not been subject to or served 

22 with a cease and desist order in any govern23 mental jurisdiction or as described in section 

24 1514(c); 

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1 ‘‘(C) has not been convicted of a felony 

2 that would preclude licensure under the law of 

3 the application State; 

4 ‘‘(D) has submitted an application to be a 

5 State-licensed loan originator in the application 

6 State; and 

7 ‘‘(E) was registered in the Nationwide 

8 Mortgage Licensing System and Registry as a 

9 loan originator during the 12-month period pre10 ceding the date of submission of the informa11 tion required under section 1505(a). 

12 ‘‘(2) PERIOD.—The period described in this 

13 paragraph shall begin on the date on which the indi14 vidual submits the information required under sec15 tion 1505(a) and shall end on the earliest of— 

16 ‘‘(A) the date on which the individual with17 draws the application to be a State-licensed 

18 loan originator in the application State; 

19 ‘‘(B) the date on which the application 

20 State denies, or issues a notice of intent to 

21 deny, the application; 

22 ‘‘(C) the date on which the application 

23 State grants a State license; or 

24 ‘‘(D) the date that is 120 days after the 

25 date on which the individual submits the applimstockstill on DSK30JT082PROD with BILLS

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1 cation, if the application is listed on the Nation2 wide Mortgage Licensing System and Registry 

3 as incomplete. 

4 ‘‘(b) TEMPORARY AUTHORITY TO ORIGINATE LOANS

5 FOR STATE-LICENSED LOAN ORIGINATORS MOVING

6 INTERSTATE.— 

7 ‘‘(1) IN GENERAL.—A State-licensed loan origi8 nator shall be deemed to have temporary authority 

9 to act as a loan originator in an application State 

10 for the period described in paragraph (2) if the 

11 State-licensed loan originator— 

12 ‘‘(A) meets the requirements of subpara13 graphs (A), (B), (C), and (D) of subsection 

14 (a)(1); 

15 ‘‘(B) is employed by a State-licensed mort16 gage company in the application State; and 

17 ‘‘(C) was licensed in a State that is not the 

18 application State during the 30-day period pre19 ceding the date of submission of the informa20 tion required under section 1505(a) in connec21 tion with the application submitted to the appli22 cation State. 

23 ‘‘(2) PERIOD.—The period described in this 

24 paragraph shall begin on the date on which the 

25 State-licensed loan originator submits the informamstockstill on DSK30JT082PROD with BILLS

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1 tion required under section 1505(a) in connection 

2 with the application submitted to the application 

3 State and end on the earliest of— 

4 ‘‘(A) the date on which the State-licensed 

5 loan originator withdraws the application to be 

6 a State-licensed loan originator in the applica7 tion State; 

8 ‘‘(B) the date on which the application 

9 State denies, or issues a notice of intent to 

10 deny, the application; 

11 ‘‘(C) the date on which the application 

12 State grants a State license; or 

13 ‘‘(D) the date that is 120 days after the 

14 date on which the State-licensed loan originator 

15 submits the application, if the application is 

16 listed on the Nationwide Mortgage Licensing 

17 System and Registry as incomplete. 

18 ‘‘(c) APPLICABILITY.— 

19 ‘‘(1) EMPLOYER OF LOAN ORIGINATORS.—Any 

20 person employing an individual who is deemed to 

21 have temporary authority to act as a loan originator 

22 in an application State pursuant to this section shall 

23 be subject to the requirements of this title and to 

24 applicable State law to the same extent as if such 

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1 individual was a State-licensed loan originator li2 censed by the application State. 

3 ‘‘(2) ENGAGING IN MORTGAGE LOAN ACTIVI4 TIES.—Any individual who is deemed to have tem5 porary authority to act as a loan originator in an ap6 plication State pursuant to this section and who en7 gages in residential mortgage loan origination activi8 ties shall be subject to the requirements of this title 

9 and to applicable State law to the same extent as if 

10 such individual was a State-licensed loan originator 

11 licensed by the application State. 

12 ‘‘(d) DEFINITIONS.—In this section, the following 

13 definitions shall apply: 

14 ‘‘(1) APPLICATION STATE.—The term ‘applica15 tion State’ means a State in which a registered loan 

16 originator or a State-licensed loan originator seeks 

17 to be licensed. 

18 ‘‘(2) STATE-LICENSED MORTGAGE COMPANY.— 

19 The term ‘State-licensed mortgage company’ means 

20 an entity licensed or registered under the law of any 

21 State to engage in residential mortgage loan origina22 tion and processing activities.’’. 

23 (b) TABLE OF CONTENTS AMENDMENT.—The table 

24 of contents in section 1(b) of the Housing and Economic 

25 Recovery Act of 2008 (42 U.S.C. 4501 note) is amended 

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1 by inserting after the item relating to section 1517 the 

2 following: 

‘‘Sec. 1518. Employment transition of loan originators.’’. 

3 (c) EFFECTIVE DATE.—This section and the amend4 ments made by this section shall take effect on the date 

5 that is 18 months after the date of enactment of this Act. 

Æ 

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