IB 

Union Calendar No. 454 

114TH CONGRESS 

2D SESSION H. R. 2121 

[Report No. 114–584] 

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 HOUSE OF REPRESENTATIVES 

APRIL 29, 2015 

Mr. STIVERS (for himself, Ms. SEWELL of Alabama, Mr. WESTMORELAND, 

Mrs. BEATTY, Mr. MESSER, and Ms. SINEMA) introduced the following 

bill; which was referred to the Committee on Financial Services 

MAY 23, 2016 

Additional sponsors: Mr. PERLMUTTER, Mrs. CAROLYN B. MALONEY of New 

York, Mr. HUIZENGA of Michigan, Mr. CARNEY, Mr. MULVANEY, Mr. 

SHERMAN, Mr. TIPTON, Mr. LUETKEMEYER, Mr. ROSS, Mr. DELANEY, 

Mr. UPTON, Mr. KILDEE, Mr. GRIFFITH, Mr. SIRES, Ms. MOORE, Mr. 

RIGELL, Mr. CLEAVER, Mr. SEAN PATRICK MALONEY of New York, Mr. 

DAVID SCOTT of Georgia, Mr. MEEKS, Mrs. LOVE, Mr. POLIS, Mr. 

FINCHER, Mr. LARSON of Connecticut, Mr. HIMES, Mr. NEUGEBAUER, 

Mr. QUIGLEY, Mr. FOSTER, Mr. POLIQUIN, Mr. YODER, Mr. COFFMAN, 

Mr. WILLIAMS, Mr. PITTENGER, Mr. POSEY, Mr. BARR, Mrs. COMSTOCK, 

Mr. ASHFORD, Mr. MOOLENAAR, Mr. FORBES, Mrs. BLACKBURN, Mrs. 

MILLER of Michigan, Ms. MICHELLE LUJAN GRISHAM of New Mexico, 

Mr. RUPPERSBERGER, Mr. RENACCI, Mr. MURPHY of Pennsylvania, and 

Mr. TURNER

MAY 23, 2016 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on April 29, 2015] 


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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. 


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

3 SECTION 1. ELIMINATING BARRIERS TO JOBS FOR LOAN 

4 ORIGINATORS. 

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

6 Act of 2008 (12 U.S.C. 5101 et seq.) is amended by adding 

7 at the end the following: 

8 ‘‘SEC. 1518. EMPLOYMENT TRANSITION OF LOAN ORIGINA9 TORS. 

10 ‘‘(a) TEMPORARY AUTHORITY TO ORIGINATE LOANS

11 FOR LOAN ORIGINATORS MOVING FROM A DEPOSITORY IN12 STITUTION TO A NON-DEPOSITORY INSTITUTION.— 

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

14 State-licensed mortgage company, an individual who 

15 is a registered loan originator shall be deemed to have 

16 temporary authority to act as a loan originator in an 

17 application State for the period described in para18 graph (2) if the individual— 

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

20 originator license denied, or had such a license 

21 revoked or suspended in any governmental juris22 diction; 

23 ‘‘(B) has not been subject to or served with 

24 a cease and desist order in any governmental ju25 risdiction or as described in section 1514(c); 


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

2 would preclude licensure under the law of the ap3 plication 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 information 

11 required under section 1505(a). 

12 ‘‘(2) PERIOD.—The period described in para13 graph (1) shall begin on the date that the individual 

14 submits the information required under section 

15 1505(a) and shall end on the earliest of— 

16 ‘‘(A) the date that the individual withdraws 

17 the application to be a State-licensed loan origi18 nator in the application State; 

19 ‘‘(B) the date that the application State de20 nies, or issues a notice of intent to deny, the ap21 plication; 

22 ‘‘(C) the date that the application State 

23 grants a State license; or 

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

25 on which the individual submits the application, 


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1 if the application is listed on the Nationwide 

2 Mortgage Licensing System and Registry as in3 complete. 

4 ‘‘(b) TEMPORARY AUTHORITY TO ORIGINATE LOANS

5 FOR STATE-LICENSED LOAN ORIGINATORS MOVING INTER6 STATE.— 

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

9 act as a loan originator in an application State for 

10 the period described in paragraph (2) if the State-li11 censed 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 information 

20 required under section 1505(a) in connection 

21 with the application submitted to the application 

22 State. 

23 ‘‘(2) PERIOD.—The period described in para24 graph (1) shall begin on the date that the State-li25 censed loan originator submits the information reVerDate Sep 11 2014 00:40 May 24, 2016 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6203 E:\BILLS\H2121.RH H2121

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1 quired under section 1505(a) in connection with the 

2 application submitted to the application State and 

3 end on the earliest of— 

4 ‘‘(A) the date that the State-licensed loan 

5 originator withdraws the application to be a 

6 State-licensed loan originator in the application 

7 State; 

8 ‘‘(B) the date that the application State de9 nies, or issues a notice of intent to deny, the ap10 plication; 

11 ‘‘(C) the date that the application State 

12 grants a State license; or 

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

14 on which the State-licensed loan originator sub15 mits the application, if the application is listed 

16 on the Nationwide Mortgage Licensing System 

17 and Registry as incomplete. 

18 ‘‘(c) APPLICABILITY.— 

19 ‘‘(1) Any person employing an individual who is 

20 deemed to have temporary authority to act as a loan 

21 originator in an application State pursuant to this 

22 section shall be subject to the requirements of this title 

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

24 such individual was a State-licensed loan originator 

25 licensed by the application State. 


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1 ‘‘(2) Any individual who is deemed to have tem2 porary authority to act as a loan originator in an 

3 application State pursuant to this section and who 

4 engages in residential mortgage loan origination ac5 tivities shall be subject to the requirements of this title 

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

7 such individual was a State-licensed loan originator 

8 licensed by the application State. 

9 ‘‘(d) DEFINITIONS.—In this section, the following defi10 nitions shall apply: 

11 ‘‘(1) STATE-LICENSED MORTGAGE COMPANY.— 

12 The term ‘State-licensed mortgage company’ means 

13 an entity licensed or registered under the law of any 

14 State to engage in residential mortgage loan origina15 tion and processing activities. 

16 ‘‘(2) APPLICATION STATE.—The term ‘applica17 tion State’ means a State in which a registered loan 

18 originator or a State-licensed loan originator seeks to 

19 be licensed.’’. 

20 (b) TABLE OF CONTENTS AMENDMENT.—The table of 

21 contents in section 1(b) of the Housing and Economic Re22 covery Act of 2008 (42 U.S.C. 4501 note) is amended by 

23 inserting after the item relating to section 1517 the fol24 lowing: 

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


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1 SEC. 2. AMENDMENT TO CIVIL LIABILITY OF THE BUREAU 

2 AND OTHER OFFICIALS. 

3 Section 1513 of the S.A.F.E. Mortgage Licensing Act 

4 of 2008 (12 U.S.C. 5112) is amended by striking ‘‘are loan 

5 originators or are applying for licensing or registration as 

6 loan originators’’ and inserting ‘‘are applying for licensing 

7 or registration using the Nationwide Mortgage Licensing 

8 System and Registry’’. 

9 SEC. 3. EFFECTIVE DATE. 

10 This Act and the amendments made by this Act shall 

11 take effect on the date that is 18 months after the date of 

12 the enactment of this Act. 


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Union Calendar No. 454 

114TH CONGRESS 

2D SESSION H. R. 2121 

[Report No. 114–584] 

A BILL 

To amend the S.A.F.E. Mortgage Licensing Act of 

for other purposes. originators transitioning between employers, and 2008 to provide a temporary license for loan 

MAY 23, 2016 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


emcdonald on DSK9F6TC42PROD with BILLS