datamatters24/research-document-archive huggingface dataset:
410 
(D) RETEST AFTER LAPSE OF LICENSE.—A 
State-licensed loan originator who fails to main-
tain a valid license for a period of 5 years or 
longer shall retake the test, not taking into ac-
count any time during which such individual is 
a registered loan originator. 
(e) MORTGAGE CALL REPORTS.—Each mortgage li-
censee shall submit to the Nationwide Mortgage Licensing 
System and Registry reports of condition, which shall be 
in such form and shall contain such information as the Na-
tionwide Mortgage Licensing System and Registry may re-
quire. 
SEC. 1506. STANDARDS FOR STATE LICENSE RENEWAL. 
(a) IN GENERAL.—The minimum standards for license 
renewal for State-licensed loan originators shall include the 
following: 
(1) The loan originator continues to meet the 
minimum standards for license issuance. 
(2) The loan originator has satisfied the annual 
continuing education requirements described in sub-
section (b). 
(b) CONTINUING EDUCATION
FOR STATE-LICENSED 
LOAN ORIGINATORS.— 
(1) IN GENERAL.—In order to meet the annual 
continuing education requirements referred to in sub-
411 
section (a)(2), a State-licensed loan originator shall 
complete at least 8 hours of education approved in ac-
cordance with paragraph (2), which shall include at 
least— 
(A) 3 hours of Federal law and regulations; 
(B) 2 hours of ethics, which shall include 
instruction on fraud, consumer protection, and 
fair lending issues; and 
(C) 2 hours of training related to lending 
standards for the nontraditional mortgage prod-
uct marketplace. 
(2) APPROVED
EDUCATIONAL
COURSES.—For 
purposes of paragraph (1), continuing education 
courses shall be reviewed, and approved by the Na-
tionwide Mortgage Licensing System and Registry. 
(3) CALCULATION
OF
CONTINUING
EDUCATION 
CREDITS.—A State-licensed loan originator— 
(A) may only receive credit for a continuing 
education course in the year in which the course 
is taken; and 
(B) may not take the same approved course 
in the same or successive years to meet the an-
nual requirements for continuing education. 
(4) INSTRUCTOR CREDIT.—A State-licensed loan 
originator who is approved as an instructor of an ap-
412 
proved continuing education course may receive credit 
for the originator’s own annual continuing education 
requirement at the rate of 2 hours credit for every 1 
hour taught. 
(5) LIMITATION AND STANDARDS.— 
(A) LIMITATION.—To maintain the inde-
pendence of the approval process, the Nationwide 
Mortgage Licensing System and Registry shall 
not directly or indirectly offer any continuing 
education courses for loan originators. 
(B) STANDARDS.—In approving courses 
under this section, the Nationwide Mortgage Li-
censing System and Registry shall apply reason-
able standards in the review and approval of 
courses. 
SEC. 1507. SYSTEM OF REGISTRATION ADMINISTRATION BY 
FEDERAL AGENCIES. 
(a) DEVELOPMENT.— 
(1) IN GENERAL.—The Federal banking agencies 
shall jointly, through the Federal Financial Institu-
tions Examination Council, and together with the 
Farm Credit Administration, develop and maintain a 
system for registering employees of a depository insti-
tution, employees of a subsidiary that is owned and 
controlled by a depository institution and regulated
413 
by a Federal banking agency, or employees of an in-
stitution regulated by the Farm Credit Administra-
tion, as registered loan originators with the Nation-
wide Mortgage Licensing System and Registry. The 
system shall be implemented before the end of the 1- 
year period beginning on the date of enactment of this 
title. 
(2) REGISTRATION REQUIREMENTS.—In connec-
tion with the registration of any loan originator 
under this subsection, the appropriate Federal bank-
ing agency and the Farm Credit Administration 
shall, at a minimum, furnish or cause to be furnished 
to the Nationwide Mortgage Licensing System and 
Registry information concerning the employees’s iden-
tity, including— 
(A) fingerprints for submission to the Fed-
eral Bureau of Investigation, and any govern-
mental agency or entity authorized to receive 
such information for a State and national crimi-
nal history background check; and 
(B) personal history and experience, includ-
ing authorization for the Nationwide Mortgage 
Licensing System and Registry to obtain infor-
mation related to any administrative, civil or
414 
criminal findings by any governmental jurisdic-
tion. 
(b) COORDINATION.— 
(1) UNIQUE IDENTIFIER.—The Federal banking 
agencies, through the Financial Institutions Exam-
ination Council, and the Farm Credit Administration 
shall coordinate with the Nationwide Mortgage Li-
censing System and Registry to establish protocols for 
assigning a unique identifier to each registered loan 
originator that will facilitate electronic tracking and 
uniform identification of, and public access to, the 
employment history of and publicly adjudicated dis-
ciplinary and enforcement actions against loan origi-
nators. 
(2) NATIONWIDE MORTGAGE LICENSING SYSTEM 
AND
REGISTRY
DEVELOPMENT.—To facilitate the 
transfer of information required by subsection (a)(2), 
the Nationwide Mortgage Licensing System and Reg-
istry shall coordinate with the Federal banking agen-
cies, through the Financial Institutions Examination 
Council, and the Farm Credit Administration con-
cerning the development and operation, by such Sys-
tem and Registry, of the registration functionality 
and data requirements for loan originators.
415 
(c) CONSIDERATION OF FACTORS AND PROCEDURES.— 
In establishing the registration procedures under subsection 
(a) and the protocols for assigning a unique identifier to 
a registered loan originator, the Federal banking agencies 
shall make such de minimis exceptions as may be appro-
priate to paragraphs (1)(A) and (2) of section 1504(a), 
shall make reasonable efforts to utilize existing information 
to minimize the burden of registering loan originators, and 
shall consider methods for automating the process to the 
greatest extent practicable consistent with the purposes of 
this title. 
SEC. 1508. SECRETARY OF HOUSING AND URBAN DEVELOP-
MENT BACKUP AUTHORITY TO ESTABLISH A 
LOAN ORIGINATOR LICENSING SYSTEM. 
(a) BACKUP LICENSING SYSTEM.—If, by the end of the 
1-year period, or the 2-year period in the case of a State 
whose legislature meets only biennially, beginning on the 
date of the enactment of this title or at any time thereafter, 
the Secretary determines that a State does not have in place 
by law or regulation a system for licensing and registering 
loan originators that meets the requirements of sections 
1505 and 1506 and subsection (d) of this section, or does 
not participate in the Nationwide Mortgage Licensing Sys-
tem and Registry, the Secretary shall provide for the estab-
lishment and maintenance of a system for the licensing and
416 
registration by the Secretary of loan originators operating 
in such State as State-licensed loan originators. 
(b) LICENSING AND REGISTRATION REQUIREMENTS.— 
The system established by the Secretary under subsection 
(a) for any State shall meet the requirements of sections 
1505 and 1506 for State-licensed loan originators. 
(c) UNIQUE IDENTIFIER.—The Secretary shall coordi-
nate with the Nationwide Mortgage Licensing System and 
Registry to establish protocols for assigning a unique iden-
tifier to each loan originator licensed by the Secretary as 
a State-licensed loan originator that will facilitate elec-
tronic tracking and uniform identification of, and public 
access to, the employment history of and the publicly adju-
dicated disciplinary and enforcement actions against loan 
originators. 
(d) STATE LICENSING LAW REQUIREMENTS.—For 
purposes of this section, the law in effect in a State meets 
the requirements of this subsection if the Secretary deter-
mines the law satisfies the following minimum require-
ments: 
(1) A State loan originator supervisory author-
ity is maintained to provide effective supervision and 
enforcement of such law, including the suspension, 
termination, or nonrenewal of a license for a viola-
tion of State or Federal law.
417 
(2) The State loan originator supervisory au-
thority ensures that all State-licensed loan originators 
operating in the State are registered with Nationwide 
Mortgage Licensing System and Registry. 
(3) The State loan originator supervisory au-
thority is required to regularly report violations of 
such law, as well as enforcement actions and other 
relevant information, to the Nationwide Mortgage Li-
censing System and Registry. 
(4) The State loan originator supervisory au-
thority has a process in place for challenging infor-
mation contained in the Nationwide Mortgage Licens-
ing System and Registry. 
(5) The State loan originator supervisory au-
thority has established a mechanism to assess civil 
money penalties for individuals acting as mortgage 
originators in their State without a valid license or 
registration. 
(6) The State loan originator supervisory au-
thority has established minimum net worth or surety 
bonding requirements that reflect the dollar amount of 
loans originated by a residential mortgage loan origi-
nator. 
(e) TEMPORARY EXTENSION OF PERIOD.—The Sec-
retary may extend, by not more than 24 months, the 1-
418 
year or 2-year period, as the case may be, referred to in 
subsection (a) for the licensing of loan originators in any 
State under a State licensing law that meets the require-
ments of sections 1505 and 1506 and subsection (d) if the 
Secretary determines that such State is making a good faith 
effort to establish a State licensing law that meets such re-
quirements, license mortgage originators under such law, 
and register such originators with the Nationwide Mortgage 
Licensing System and Registry. 
(f) CONTRACTING AUTHORITY.—The Secretary may 
enter into contracts with qualified independent parties, as 
necessary to efficiently fulfill the obligations of the Sec-
retary under this section. 
SEC. 1509. BACKUP AUTHORITY TO ESTABLISH A NATION-
WIDE MORTGAGE LICENSING AND REGISTRY 
SYSTEM. 
If at any time the Secretary determines that the Na-
tionwide Mortgage Licensing System and Registry is fail-
ing to meet the requirements and purposes of this title for 
a comprehensive licensing, supervisory, and tracking sys-
tem for loan originators, the Secretary shall establish and 
maintain such a system to carry out the purposes of this 
title and the effective registration and regulation of loan 
originators.
419 
SEC. 1510. FEES. 
The Federal banking agencies, the Farm Credit Ad-
ministration, the Secretary, and the Nationwide Mortgage 
Licensing System and Registry may charge reasonable fees 
to cover the costs of maintaining and providing access to 
information from the Nationwide Mortgage Licensing Sys-
tem and Registry, to the extent that such fees are not 
charged to consumers for access to such system and registry. 
SEC. 1511. 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.
420 
SEC. 1512. 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 
information or material provided to the Nationwide Mort-
gage Licensing System and Registry or a system established 
by the Secretary under section 1509, 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
421 
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-
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. 1513. 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 1509, or any officer or employee of any such entity,
422 
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, 
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. 1514. 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 1508; 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 title. 
(b) EXAMINATION AUTHORITY.—
428 
cease and desist order entered without a prior 
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 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 a licensing system estab-
429 
lished by the Secretary under section 1508, if the Sec-
retary finds, on the record after notice and oppor-
tunity for hearing, that such loan originator has vio-
lated or failed to comply with any requirement of this 
title or any regulation prescribed by the Secretary 
under this title 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 $25,000. 
SEC. 1515. STATE EXAMINATION AUTHORITY. 
In addition to any authority allowed under State law 
a State licensing agency shall have the authority to conduct 
investigations and examinations as follows: 
(1) For the purposes of investigating violations 
or complaints arising under this title, or for the pur-
poses of examination, the State licensing agency may 
review, investigate, or examine any loan originator 
licensed or required to be licensed under this title, as 
often as necessary in order to carry out the purposes 
of this title. 
(2) Each such loan originator shall make avail-
able upon request to the State licensing agency the 
books and records relating to the operations of such 
originator. The State licensing agency may have ac-
cess to such books and records and interview the offi-
430 
cers, principals, loan originators, employees, inde-
pendent contractors, agents, and customers of the li-
censee concerning their business. 
(3) The authority of this section shall remain in 
effect, whether such a loan originator acts or claims 
to act under any licensing or registration law of such 
State, or claims to act without such authority. 
(4) No person subject to investigation or exam-
ination under this section may knowingly withhold, 
abstract, remove, mutilate, destroy, or secrete any 
books, records, computer records, or other information. 
SEC. 1516. REPORTS AND RECOMMENDATIONS TO CON-
GRESS. 
(a) ANNUAL REPORTS.—Not later than 1 year after 
the date of enactment of this title, and annually thereafter, 
the Secretary shall submit a report to Congress on the effec-
tiveness of the provisions of this title, including legislative 
recommendations, if any, for strengthening consumer pro-
tections, enhancing examination standards, streamlining 
communication between all stakeholders involved in resi-
dential mortgage loan origination and processing, and es-
tablishing performance based bonding requirements for 
mortgage originators or institutions that employ such bro-
kers.
II
106TH CONGRESS
2D SESSION
H. R. 3594
IN THE SENATE OF THE UNITED STATES
DECEMBER 15 (legislative day, SEPTEMBER 22), 2000
Received
AN ACT
To repeal the modification of the installment method.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
431 
(b) LEGISLATIVE RECOMMENDATIONS.—Not later than 
6 months after the date of enactment of this title, the Sec-
retary shall make recommendations to Congress on legisla-
tive reforms to the Real Estate Settlement Procedures Act 
of 1974, that the Secretary deems appropriate to promote 
more transparent disclosures, allowing consumers to better 
shop and compare mortgage loan terms and settlement 
costs. 
SEC. 1517. STUDY AND REPORTS ON DEFAULTS AND FORE-
CLOSURES. 
(a) STUDY REQUIRED.—The Secretary shall conduct 
an extensive study of the root causes of default and fore-
closure of home loans, using as much empirical data as is 
available. 
(b) PRELIMINARY REPORT TO CONGRESS.—Not later 
than 6 months after the date of enactment of this title, the 
Secretary shall submit to Congress a preliminary report re-
garding the study required by this section. 
(c) FINAL REPORT TO CONGRESS.—Not later than 12 
months after the date of enactment of this title, the Sec-
retary shall submit to Congress a final report regarding the 
results of the study required by this section, which shall in-
clude any recommended legislation relating to the study, 
and recommendations for best practices and for a process
432 
to provide targeted assistance to populations with the high-
est risk of potential default or foreclosure. 
TITLE VI—MISCELLANEOUS 
SEC. 1601. STUDY AND REPORTS ON GUARANTEE FEES. 
(a) ONGOING STUDY OF FEES.—The Director shall 
conduct an ongoing study of fees charged by enterprises for 
guaranteeing a mortgage. 
(b) COLLECTION OF DATA.—The Director shall, by reg-
ulation or order, establish procedures for the collection of 
data from enterprises for purposes of this subsection, includ-
ing the format and the process for collection of such data. 
(c) REPORTS TO CONGRESS.—The Director shall an-
nually submit a report to Congress on the results of the 
study conducted under subsection (a), based on the aggre-
gated data collected under subsection (a) for the subject 
year, regarding the amount of such fees and the criteria 
used by the enterprises to determine such fees. 
(d) CONTENTS OF REPORTS.—The reports required 
under subsection (c) shall identify and analyze— 
(1) the factors considered in determining the 
amount of the guarantee fees charged; 
(2) the total revenue earned by the enterprises 
from guarantee fees; 
(3) the total costs incurred by the enterprises for 
providing guarantees;
433 
(4) the average guarantee fee charged by the en-
terprises; 
(5) an analysis of any increase or decrease in 
guarantee fees from the preceding year; 
(6) a breakdown of the revenue and costs associ-
ated with providing guarantees, based on product 
type and risk classifications; and 
(7) a breakdown of guarantee fees charged based 
on asset size of the originator and the number of 
loans sold or transferred to an enterprise. 
(e) PROTECTION OF INFORMATION.—Nothing in this 
section may be construed to require or authorize the Direc-
tor to publicly disclose information that is confidential or 
proprietary. 
SEC. 1602. STUDY AND REPORT ON DEFAULT RISK EVALUA-
TION. 
(a) STUDY.—The Director shall conduct a study of 
ways to improve the overall default risk evaluation used 
with respect to residential mortgage loans. Particular atten-
tion shall be paid to the development and utilization of 
processes and technologies that provide a means to stand-
ardize the measurement of risk. 
(b) REPORT.—The Director shall submit a report on 
the study conducted under this section to the Committee on 
Banking, Housing, and Urban Affairs of the Senate and