114TH CONGRESS 

2D SESSION H. R. 2121 

AN ACT 

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, 
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1 SECTION 1. ELIMINATING BARRIERS TO JOBS FOR LOAN 

2 ORIGINATORS. 

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 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 with17 draws the application to be a State-licensed 

18 loan originator in the application State; 

19 ‘‘(B) the date that the application State 

20 denies, or issues a notice of intent to deny, the 

21 application; 

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

23 grants a State license; or 

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

25 date on which the individual submits the appli-
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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 para24 graph (1) shall begin on the date that the State-li25 censed loan originator submits the information re-
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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 

9 denies, or issues a notice of intent to deny, the 

10 application; 

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

12 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) 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 

23 title and to applicable State law to the same extent 

24 as if such individual was a State-licensed loan origi25 nator 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 ap3 plication State pursuant to this section and who en4 gages in residential mortgage loan origination activi5 ties 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 

10 definitions 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 

19 to be licensed.’’. 

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

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

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

23 by inserting after the item relating to section 1517 the 

24 following: 

‘‘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 

5 loan originators or are applying for licensing or registra6 tion as loan originators’’ and inserting ‘‘are applying for 

7 licensing or registration using the Nationwide Mortgage 

8 Licensing 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 

12 of the enactment of this Act. 

Passed the House of Representatives May 23, 2016. 

Attest: 

Clerk. 
114TH CONGRESS 

2D SESSION H. R. 2121 

AN ACT 

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