providing access to information from the Nationwide Mort-
gage Licensing System and Registry to the extent such fees 
are not charged to consumers for access such system and 
registry. 
SEC. 110. BACKGROUND CHECKS OF LOAN ORIGINATORS. 
(a) ACCESS TO RECORDS.—Notwithstanding any other 
provision of law, in providing identification and processing 
functions, the Attorney General shall provide access to all 
criminal history information to the appropriate State offi-
cials responsible for regulating State-licensed loan origina-
tors to the extent criminal history background checks are 
required under the laws of the State for the licensing of such 
loan originators. 
(b) AGENT.—For the purposes of this section and in 
order to reduce the points of contact which the Federal Bu-
reau of Investigation may have to maintain for purposes 
of subsection (a), the Conference of State Bank Supervisors 
or a wholly owned subsidiary may be used as a channeling 
agent of the States for requesting and distributing informa-
tion between the Department of Justice and the appropriate 
State agencies. 
SEC. 111. CONFIDENTIALITY OF INFORMATION. 
(a) SYSTEM CONFIDENTIALITY.—Except as otherwise 
provided in this section, any requirement under Federal or 
State law regarding the privacy or confidentiality of any 
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information or material provided to the Nationwide Mort-
gage Licensing System and Registry or a system established 
by the Secretary under section 108, and any privilege aris-
ing under Federal or State law (including the rules of any 
Federal or State court) with respect to such information 
or material, shall continue to apply to such information 
or material after the information or material has been dis-
closed to the system. Such information and material may 
be shared with all State and Federal regulatory officials 
with mortgage industry oversight authority without the loss 
of privilege or the loss of confidentiality protections pro-
vided by Federal and State laws. 
(b) 
NONAPPLICABILITY
OF
CERTAIN
REQUIRE-
MENTS.—Information or material that is subject to a privi-
lege or confidentiality under subsection (a) shall not be sub-
ject to— 
(1) disclosure under any Federal or State law 
governing the disclosure to the public of information 
held by an officer or an agency of the Federal Govern-
ment or the respective State; or 
(2) subpoena or discovery, or admission into evi-
dence, in any private civil action or administrative 
process, unless with respect to any privilege held by 
the Nationwide Mortgage Licensing System and Reg-
istry or the Secretary with respect to such informa-
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tion or material, the person to whom such informa-
tion or material pertains waives, in whole or in part, 
in the discretion of such person, that privilege. 
(c) COORDINATION WITH OTHER LAW.—Any State 
law, including any State open record law, relating to the 
disclosure of confidential supervisory information or any 
information or material described in subsection (a) that is 
inconsistent with subsection (a) shall be superseded by the 
requirements of such provision to the extent State law pro-
vides less confidentiality or a weaker privilege. 
(d) PUBLIC ACCESS TO INFORMATION.—This section 
shall not apply with respect to the information or material 
relating to the employment history of, and publicly adju-
dicated disciplinary and enforcement actions against, loan 
originators that is included in Nationwide Mortgage Li-
censing System and Registry for access by the public. 
SEC. 112. LIABILITY PROVISIONS. 
The Secretary, any State official or agency, any Fed-
eral banking agency, or any organization serving as the ad-
ministrator of the Nationwide Mortgage Licensing System 
and Registry or a system established by the Secretary under 
section 108, or any officer or employee of any such entity, 
shall not be subject to any civil action or proceeding for 
monetary damages by reason of the good-faith action or 
omission of any officer or employee of any such entity, 
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while acting within the scope of office or employment, relat-
ing to the collection, furnishing, or dissemination of infor-
mation concerning persons who are loan originators or are 
applying for licensing or registration as loan originators. 
SEC. 113. ENFORCEMENT UNDER HUD BACKUP LICENSING 
SYSTEM. 
(a) SUMMONS AUTHORITY.—The Secretary may— 
(1) examine any books, papers, records, or other 
data of any loan originator operating in any State 
which is subject to a licensing system established by 
the Secretary under section 107; and 
(2) summon any loan originator referred to in 
paragraph (1) or any person having possession, cus-
tody, or care of the reports and records relating to 
such loan originator, to appear before the Secretary 
or any delegate of the Secretary at a time and place 
named in the summons and to produce such books, 
papers, records, or other data, and to give testimony, 
under oath, as may be relevant or material to an in-
vestigation of such loan originator for compliance 
with the requirements of this subtitle. 
(b) EXAMINATION AUTHORITY.— 
(1) IN GENERAL.—If the Secretary establishes a 
licensing system under section 107 for any State, the 
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Secretary shall appoint examiners for the purposes of 
administering such section. 
(2) POWER
TO
EXAMINE.—Any examiner ap-
pointed under paragraph (1) shall have power, on be-
half of the Secretary, to make any examination of 
any loan originator operating in any State which is 
subject to a licensing system established by the Sec-
retary under section 107 whenever the Secretary de-
termines an examination of any loan originator is 
necessary to determine the compliance by the origi-
nator with this subtitle. 
(3) REPORT OF EXAMINATION.—Each examiner 
appointed under paragraph (1) shall make a full and 
detailed report of examination of any loan originator 
examined to the Secretary. 
(4) ADMINISTRATION OF OATHS AND AFFIRMA-
TIONS; EVIDENCE.—In connection with examinations 
of loan originators operating in any State which is 
subject to a licensing system established by the Sec-
retary under section 107, or with other types of inves-
tigations to determine compliance with applicable law 
and regulations, the Secretary and examiners ap-
pointed by the Secretary may administer oaths and 
affirmations and examine and take and preserve tes-
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timony under oath as to any matter in respect to the 
affairs of any such loan originator. 
(5) ASSESSMENTS.—The cost of conducting any 
examination of any loan originator operating in any 
State which is subject to a licensing system estab-
lished by the Secretary under section 107 shall be as-
sessed by the Secretary against the loan originator to 
meet the Secretary’s expenses in carrying out such ex-
amination. 
(c) CEASE AND DESIST PROCEEDING.— 
(1) AUTHORITY
OF
SECRETARY.—If the Sec-
retary finds, after notice and opportunity for hearing, 
that any person is violating, has violated, or is about 
to violate any provision of this subtitle, or any regu-
lation thereunder, with respect to a State which is 
subject to a licensing system established by the Sec-
retary under section 107, the Secretary may publish 
such findings and enter an order requiring such per-
son, and any other person that is, was, or would be 
a cause of the violation, due to an act or omission the 
person knew or should have known would contribute 
to such violation, to cease and desist from committing 
or causing such violation and any future violation of 
the same provision, rule, or regulation. Such order 
may, in addition to requiring a person to cease and 
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hearing before the Secretary may not apply to 
the court except after hearing and decision by the 
Secretary on the respondent’s application under 
subparagraph (A). 
(C) NO
AUTOMATIC
STAY
OF
TEMPORARY 
ORDER.—The 
commencement 
of 
proceedings 
under subparagraph (B) shall not, unless specifi-
cally ordered by the court, operate as a stay of 
the Secretary’s order. 
(5) AUTHORITY
OF
THE
SECRETARY
TO
PRO-
HIBIT
PERSONS
FROM
SERVING
AS
LOAN
ORIGINA-
TORS.—In any cease-and-desist proceeding under 
paragraph (1), the Secretary may issue an order to 
prohibit, conditionally or unconditionally, and per-
manently or for such period of time as the Secretary 
shall determine, any person who has violated this sub-
title or regulations thereunder, from acting as a loan 
originator if the conduct of that person demonstrates 
unfitness to serve as a loan originator. 
(d) AUTHORITY
OF
THE SECRETARY TO ASSESS 
MONEY PENALTIES.— 
(1) IN GENERAL.—The Secretary may impose a 
civil penalty on a loan originator operating in any 
State which is subject to licensing system established 
by the Secretary under section 107 if the Secretary 
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finds, on the record after notice and opportunity for 
hearing, that such loan originator has violated or 
failed to comply with any requirement of this subtitle 
or any regulation prescribed by the Secretary under 
this subtitle or order issued under subsection (c). 
(2) MAXIMUM AMOUNT OF PENALTY.—The max-
imum amount of penalty for each act or omission de-
scribed in paragraph (1) shall be $5,000 for each day 
the violation continues. 
Subtitle B—Residential Mortgage 
Loan Origination Standards 
SEC. 121. DEFINITIONS. 
Section 103 of the Truth in Lending Act (15 U.S.C. 
1602) is amended by adding at the end the following new 
subsection: 
‘‘(cc) DEFINITIONS RELATING TO MORTGAGE ORIGINA-
TION AND RESIDENTIAL MORTGAGE LOANS.— 
‘‘(1) COMMISSION.—Unless otherwise specified, 
the term ‘Commission’ means the Federal Trade Com-
mission. 
‘‘(2) FEDERAL BANKING AGENCIES.—The term 
‘Federal banking agencies’ means the Board of Gov-
ernors of the Federal Reserve System, the Comptroller 
of the Currency, the Director of the Office of Thrift 
Supervision, the Federal Deposit Insurance Corpora-
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tion, and the National Credit Union Administration 
Board. 
‘‘(3) MORTGAGE ORIGINATOR.—The term ‘mort-
gage originator’— 
‘‘(A) means any person who— 
‘‘(i) takes a residential mortgage loan 
application; 
‘‘(ii) assists a consumer in obtaining 
or applying to obtain a residential mort-
gage loan; or 
‘‘(iii) offers or negotiates terms of a 
residential mortgage loan, for direct or in-
direct compensation or gain, or in the ex-
pectation of direct or indirect compensation 
or gain; 
‘‘(B) includes any person who represents to 
the public, through advertising or other means of 
communicating or providing information (in-
cluding the use of business cards, stationery, bro-
chures, signs, rate lists, or other promotional 
items), that such person can or will provide any 
of the services or perform any of the activities 
described in subparagraph (A); and 
‘‘(C) does not include any person who is not 
otherwise described in subparagraph (A) or (B) 
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and who performs purely administrative or cler-
ical tasks on behalf of a person who is described 
in any such subparagraph. 
‘‘(4) NATIONWIDE MORTGAGE LICENSING SYSTEM 
AND REGISTRY.—The term ‘Nationwide Mortgage Li-
censing System and Registry’ has the same meaning 
as in section 102(5) of the Mortgage Reform and 
Anti-Predatory Lending Act of 2007. 
‘‘(5) OTHER DEFINITIONS RELATING TO MORT-
GAGE ORIGINATOR.—For purposes of this subsection, 
a person ‘assists a consumer in obtaining or applying 
to obtain a residential mortgage loan’ by, among 
other things, advising on residential mortgage loan 
terms (including rates, fees, and other costs), pre-
paring residential mortgage loan packages, or col-
lecting information on behalf of the consumer with re-
gard to a residential mortgage loan. 
‘‘(6) RESIDENTIAL MORTGAGE LOAN.—The term 
‘residential mortgage loan’ means any consumer cred-
it transaction that is secured by a mortgage, deed of 
trust, or other equivalent consensual security interest 
on a dwelling or on residential real property that in-
cludes a dwelling, other than a consumer credit trans-
action under an open end credit plan or a reverse 
mortgage. 
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‘‘(7) SECRETARY.—The term ‘Secretary’, when 
used in connection with any transaction or person in-
volved with a residential mortgage loan, means the 
Secretary of Housing and Urban Development. 
‘‘(8) 
SECURITIZATION
VEHICLE.—The 
term 
‘securitization vehicle’ means a trust, corporation, 
partnership, limited liability entity, or special pur-
pose entity that— 
‘‘(A) is the issuer, or is created by the 
issuer, of mortgage pass-through certificates, par-
ticipation certificates, mortgage-backed securi-
ties, or other similar securities backed by a pool 
of assets that includes residential mortgage loans; 
and 
‘‘(B) holds such loans. 
‘‘(9) 
SECURITIZER.—The 
term 
‘securitizer’ 
means the person that transfers, conveys, or assigns, 
or causes the transfer, conveyance, or assignment of, 
residential mortgage loans, including through a spe-
cial purpose vehicle, to any securitization vehicle, ex-
cluding any trustee that holds such loans solely for 
the benefit of the securitization vehicle.’’. 
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