SAFE Transitional Licensing Act of 2015

Bill: 114-hr-2121
Sponsor: full_name: Rep. Stivers, Steve [R-OH-15]
Introduced: 2015-04-29
Policy area: Housing and Community Development
Subjects: Civil actions and liability

Consumer Financial Protection Bureau

Government liability

Housing finance and home ownership

Licensing and registrations

State and local government operations
Latest action: action_date: 2016-05-24
text: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2015-04-29
action_desc: Introduced in House
text: <p><b>SAFE Transitional Licensing Act of 2015 </b></p> <p>This bill amends the S.A.F.E. Mortgage Licensing Act of 2008 to provide a temporary license of 120 days for registered loan originators: (1) moving from a financial institution to a state-licensed non-bank originator, or (2) moving interstate to a state-licensed loan originator in another state.</p> <p>Any person registering a registered loan originator with the Nationwide Mortgage Licensing System and Registry shall be subject to this Act and to applicable state law to the same extent as if that registered loan originator was licensed and registered as a state-licensed loan originator.</p>

action_date: 2016-05-23
action_desc: Passed House amended
text: <p>(Sec. 1) This bill amends the S.A.F.E. Mortgage Licensing Act of 2008 (Act) to state that, upon employment by a state-licensed mortgage company, an individual who is a registered loan originator shall be deemed to have temporary authority to act as one in an application state for a specified period if the individual:</p> <ul> <li>has not had an application for a loan originator license denied, or had such a license revoked or suspended in any governmental jurisdiction;</li> <li>has not been subject to or served with a cease and desist order in any governmental jurisdiction;</li> <li>has not been convicted of a felony that would preclude licensure under the law of the application state;</li> <li>has applied to be a state-licensed originator in the application state; and</li> <li>was registered in the Nationwide Mortgage Licensing System and Registry as a loan originator during the 12-month period preceding the date of the required information.</li> </ul> <p>A state-licensed loan originator shall also be deemed to have temporary authority to act as a loan originator in an application state for a specified period if the loan originator: (1) meets certain requirements; (2) is employed by a state-licensed mortgage company in the application state; and (3) was licensed in another state during the 30-day period before submitting the information required in connection with the application to the application state.</p> <p>Any person employing an individual deemed to have such temporary authority to act as a loan originator in an application state, and any such individual who engages in residential mortgage loan activities, shall be subject to the requirements of the Act and to state law to the same extent as if such individual was a loan originator licensed by the application state.</p> <p>(Sec. 2) The exemption from civil liability of the Consumer Financial Protection Bureau (CFPB), any state official or agency, or any organization serving as the administrator of the Nationwide Mortgage Licensing System and Registry (or a CFPB-established system), or any officer or employee of any such entity, by reason of a good faith action or omission while acting within the scope of office or employment that relates to the collection, furnishing, or dissemination of information concerning persons applying for licensing or registration as loan originators shall be limited to any such activities involving only information concerning applicants using the Nationwide Mortgage Licensing System and Registry.</p>

tv_txt: I 114th CONGRESS 1st Session H. R. 2121 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 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. Short title This Act may be cited as the SAFE Transitional Licensing Act of 2015 . 2. Loan originator employment transitions Section 1504 of the S.A.F.E. Mortgage Licensing Act of 2008 ( 12 U.S.C. 5103 ) is amended by adding at the end the following new subsection: (c) Employment transition (1) Temporary license for persons moving from a financial institution to a non-bank originator A registered loan originator shall be deemed to be a State-licensed loan originator for the 120-day period beginning on the date that a State-licensed mortgage lender, mortgage banker, or mortgage servicer, that is not a depository institution, registers with the Nationwide Mortgage Licensing System and Registry that such registered loan originator is employed by such State-licensed mortgage lender, mortgage banker, or mortgage servicer. (2) Temporary license for persons moving interstate A registered loan originator or State-licensed loan originator in one State shall be deemed to be a State-licensed loan originator in another State for the 120-day period beginning on the date that a State-licensed mortgage lender, mortgage banker, or mortgage servicer in such other State registers with the Nationwide Mortgage Licensing System and Registry that such person is employed by such State-licensed mortgage lender, mortgage banker, or mortgage servicer. (3) Federal and State recognition Registration pursuant to paragraph (1) or (2) shall fulfill any licensing and registration requirement for a loan originator pursuant to this section and any State law or regulation. (4) Applicability Any person registering a registered loan originator with the Nationwide Mortgage Licensing System and Registry under this subsection shall be subject to this Act and to applicable State law to the same extent as if such registered loan originator was licensed and registered as a State-licensed loan originator under subsection (a). .

tv_txt: IB Union Calendar No. 454 114th CONGRESS 2d Session H. R. 2121 [Report No. 114–584] 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 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. Eliminating barriers to jobs for loan originators (a) In general The S.A.F.E. Mortgage Licensing Act of 2008 ( 12 U.S.C. 5101 et seq. ) is amended by adding at the end the following: 1518. Employment transition of loan originators (a) Temporary authority to originate loans for loan originators moving from a depository institution to a non-depository institution (1) In general Upon employment by a State-licensed mortgage company, an individual who is a registered loan originator shall be deemed to have temporary authority to act as a loan originator in an application State for the period described in paragraph (2) if the individual— (A) has not had an application for a loan originator license denied, or had such a license revoked or suspended in any governmental jurisdiction; (B) has not been subject to or served with a cease and desist order in any governmental jurisdiction or as described in section 1514(c); (C) has not been convicted of a felony that would preclude licensure under the law of the application State; (D) has submitted an application to be a State-licensed loan originator in the application State; and (E) was registered in the Nationwide Mortgage Licensing System and Registry as a loan originator during the 12-month period preceding the date of submission of the information required under section 1505(a). (2) Period The period described in paragraph (1) shall begin on the date that the individual submits the information required under section 1505(a) and shall end on the earliest of— (A) the date that the individual withdraws the application to be a State-licensed loan originator in the application State; (B) the date that the application State denies, or issues a notice of intent to deny, the application; (C) the date that the application State grants a State license; or (D) the date that is 120 days after the date on which the individual submits the application, if the application is listed on the Nationwide Mortgage Licensing System and Registry as incomplete. (b) Temporary authority to originate loans for State-licensed loan originators moving interstate (1) In general A State-licensed loan originator shall be deemed to have temporary authority to act as a loan originator in an application State for the period described in paragraph (2) if the State-licensed loan originator— (A) meets the requirements of subparagraphs (A), (B), (C), and (D) of subsection (a)(1); (B) is employed by a State-licensed mortgage company in the application State; and (C) was licensed in a State that is not the application State during the 30-day period preceding the date of submission of the information required under section 1505(a) in connection with the application submitted to the application State. (2) Period The period described in paragraph (1) shall begin on the date that the State-licensed loan originator submits the information required under section 1505(a) in connection with the application submitted to the application State and end on the earliest of— (A) the date that the State-licensed loan originator withdraws the application to be a State-licensed loan originator in the application State; (B) the date that the application State denies, or issues a notice of intent to deny, the application; (C) the date that the application State grants a State license; or (D) the date that is 120 days after the date on which the State-licensed loan originator submits the application, if the application is listed on the Nationwide Mortgage Licensing System and Registry as incomplete. (c) Applicability (1) Any person employing an individual who is deemed to have temporary authority to act as a loan originator in an application State pursuant to this section shall be subject to the requirements of this title and to applicable State law to the same extent as if such individual was a State-licensed loan originator licensed by the application State. (2) Any individual who is deemed to have temporary authority to act as a loan originator in an application State pursuant to this section and who engages in residential mortgage loan origination activities shall be subject to the requirements of this title and to applicable State law to the same extent as if such individual was a State-licensed loan originator licensed by the application State. (d) Definitions In this section, the following definitions shall apply: (1) State-licensed mortgage company The term State-licensed mortgage company means an entity licensed or registered under the law of any State to engage in residential mortgage loan origination and processing activities. (2) Application State The term application State means a State in which a registered loan originator or a State-licensed loan originator seeks to be licensed. . (b) Table of contents amendment The table of contents in section 1(b) of the Housing and Economic Recovery Act of 2008 ( 42 U.S.C. 4501 note) is amended by inserting after the item relating to section 1517 the following: Sec. 1518. Employment transition of loan originators. . 2. Amendment to civil liability of the Bureau and other officials Section 1513 of the S.A.F.E. Mortgage Licensing Act of 2008 ( 12 U.S.C. 5112 ) is amended by striking are loan originators or are applying for licensing or registration as loan originators and inserting are applying for licensing or registration using the Nationwide Mortgage Licensing System and Registry . 3. Effective date This Act and the amendments made by this Act shall take effect on the date that is 18 months after the date of the enactment of this Act.

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

tv_txt: IIB 114th CONGRESS 2d Session H. R. 2121 IN THE SENATE OF THE UNITED STATES May 24, 2016 Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs 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. Eliminating barriers to jobs for loan originators (a) In general The S.A.F.E. Mortgage Licensing Act of 2008 ( 12 U.S.C. 5101 et seq. ) is amended by adding at the end the following: 1518. Employment transition of loan originators (a) Temporary authority To originate loans for loan originators moving from a depository institution to a non-Depository institution (1) In general Upon employment by a State-licensed mortgage company, an individual who is a registered loan originator shall be deemed to have temporary authority to act as a loan originator in an application State for the period described in paragraph (2) if the individual— (A) has not had an application for a loan originator license denied, or had such a license revoked or suspended in any governmental jurisdiction; (B) has not been subject to or served with a cease and desist order in any governmental jurisdiction or as described in section 1514(c); (C) has not been convicted of a felony that would preclude licensure under the law of the application State; (D) has submitted an application to be a State-licensed loan originator in the application State; and (E) was registered in the Nationwide Mortgage Licensing System and Registry as a loan originator during the 12-month period preceding the date of submission of the information required under section 1505(a). (2) Period The period described in paragraph (1) shall begin on the date that the individual submits the information required under section 1505(a) and shall end on the earliest of— (A) the date that the individual withdraws the application to be a State-licensed loan originator in the application State; (B) the date that the application State denies, or issues a notice of intent to deny, the application; (C) the date that the application State grants a State license; or (D) the date that is 120 days after the date on which the individual submits the application, if the application is listed on the Nationwide Mortgage Licensing System and Registry as incomplete. (b) Temporary authority To originate loans for State-Licensed loan originators moving interstate (1) In general A State-licensed loan originator shall be deemed to have temporary authority to act as a loan originator in an application State for the period described in paragraph (2) if the State-licensed loan originator— (A) meets the requirements of subparagraphs (A), (B), (C), and (D) of subsection (a)(1); (B) is employed by a State-licensed mortgage company in the application State; and (C) was licensed in a State that is not the application State during the 30-day period preceding the date of submission of the information required under section 1505(a) in connection with the application submitted to the application State. (2) Period The period described in paragraph (1) shall begin on the date that the State-licensed loan originator submits the information required under section 1505(a) in connection with the application submitted to the application State and end on the earliest of— (A) the date that the State-licensed loan originator withdraws the application to be a State-licensed loan originator in the application State; (B) the date that the application State denies, or issues a notice of intent to deny, the application; (C) the date that the application State grants a State license; or (D) the date that is 120 days after the date on which the State-licensed loan originator submits the application, if the application is listed on the Nationwide Mortgage Licensing System and Registry as incomplete. (c) Applicability (1) Any person employing an individual who is deemed to have temporary authority to act as a loan originator in an application State pursuant to this section shall be subject to the requirements of this title and to applicable State law to the same extent as if such individual was a State-licensed loan originator licensed by the application State. (2) Any individual who is deemed to have temporary authority to act as a loan originator in an application State pursuant to this section and who engages in residential mortgage loan origination activities shall be subject to the requirements of this title and to applicable State law to the same extent as if such individual was a State-licensed loan originator licensed by the application State. (d) Definitions In this section, the following definitions shall apply: (1) State-licensed mortgage company The term State-licensed mortgage company means an entity licensed or registered under the law of any State to engage in residential mortgage loan origination and processing activities. (2) Application State The term application State means a State in which a registered loan originator or a State-licensed loan originator seeks to be licensed. . (b) Table of contents amendment The table of contents in section 1(b) of the Housing and Economic Recovery Act of 2008 ( 42 U.S.C. 4501 note) is amended by inserting after the item relating to section 1517 the following: Sec. 1518. Employment transition of loan originators. . 2. Amendment to civil liability of the Bureau and other officials Section 1513 of the S.A.F.E. Mortgage Licensing Act of 2008 ( 12 U.S.C. 5112 ) is amended by striking are loan originators or are applying for licensing or registration as loan originators and inserting are applying for licensing or registration using the Nationwide Mortgage Licensing System and Registry . 3. Effective date This Act and the amendments made by this Act shall take effect on the date that is 18 months after the date of the enactment of this Act.

Passed the House of Representatives May 23, 2016. Karen L. Haas, Clerk

tv_txt: I 114th CONGRESS 2d Session H. R. 2121 IN THE HOUSE OF REPRESENTATIVES 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. Eliminating barriers to jobs for loan originators (a) In general The S.A.F.E. Mortgage Licensing Act of 2008 ( 12 U.S.C. 5101 et seq. ) is amended by adding at the end the following: 1518. Employment transition of loan originators (a) Temporary authority To originate loans for loan originators moving from a depository institution to a non-Depository institution (1) In general Upon employment by a State-licensed mortgage company, an individual who is a registered loan originator shall be deemed to have temporary authority to act as a loan originator in an application State for the period described in paragraph (2) if the individual— (A) has not had an application for a loan originator license denied, or had such a license revoked or suspended in any governmental jurisdiction; (B) has not been subject to or served with a cease and desist order in any governmental jurisdiction or as described in section 1514(c); (C) has not been convicted of a felony that would preclude licensure under the law of the application State; (D) has submitted an application to be a State-licensed loan originator in the application State; and (E) was registered in the Nationwide Mortgage Licensing System and Registry as a loan originator during the 12-month period preceding the date of submission of the information required under section 1505(a). (2) Period The period described in paragraph (1) shall begin on the date that the individual submits the information required under section 1505(a) and shall end on the earliest of— (A) the date that the individual withdraws the application to be a State-licensed loan originator in the application State; (B) the date that the application State denies, or issues a notice of intent to deny, the application; (C) the date that the application State grants a State license; or (D) the date that is 120 days after the date on which the individual submits the application, if the application is listed on the Nationwide Mortgage Licensing System and Registry as incomplete. (b) Temporary authority To originate loans for State-Licensed loan originators moving interstate (1) In general A State-licensed loan originator shall be deemed to have temporary authority to act as a loan originator in an application State for the period described in paragraph (2) if the State-licensed loan originator— (A) meets the requirements of subparagraphs (A), (B), (C), and (D) of subsection (a)(1); (B) is employed by a State-licensed mortgage company in the application State; and (C) was licensed in a State that is not the application State during the 30-day period preceding the date of submission of the information required under section 1505(a) in connection with the application submitted to the application State. (2) Period The period described in paragraph (1) shall begin on the date that the State-licensed loan originator submits the information required under section 1505(a) in connection with the application submitted to the application State and end on the earliest of— (A) the date that the State-licensed loan originator withdraws the application to be a State-licensed loan originator in the application State; (B) the date that the application State denies, or issues a notice of intent to deny, the application; (C) the date that the application State grants a State license; or (D) the date that is 120 days after the date on which the State-licensed loan originator submits the application, if the application is listed on the Nationwide Mortgage Licensing System and Registry as incomplete. (c) Applicability (1) Any person employing an individual who is deemed to have temporary authority to act as a loan originator in an application State pursuant to this section shall be subject to the requirements of this title and to applicable State law to the same extent as if such individual was a State-licensed loan originator licensed by the application State. (2) Any individual who is deemed to have temporary authority to act as a loan originator in an application State pursuant to this section and who engages in residential mortgage loan origination activities shall be subject to the requirements of this title and to applicable State law to the same extent as if such individual was a State-licensed loan originator licensed by the application State. (d) Definitions In this section, the following definitions shall apply: (1) State-licensed mortgage company The term State-licensed mortgage company means an entity licensed or registered under the law of any State to engage in residential mortgage loan origination and processing activities. (2) Application State The term application State means a State in which a registered loan originator or a State-licensed loan originator seeks to be licensed. . (b) Table of contents amendment The table of contents in section 1(b) of the Housing and Economic Recovery Act of 2008 ( 42 U.S.C. 4501 note) is amended by inserting after the item relating to section 1517 the following: Sec. 1518. Employment transition of loan originators. . 2. Amendment to civil liability of the Bureau and other officials Section 1513 of the S.A.F.E. Mortgage Licensing Act of 2008 ( 12 U.S.C. 5112 ) is amended by striking are loan originators or are applying for licensing or registration as loan originators and inserting are applying for licensing or registration using the Nationwide Mortgage Licensing System and Registry . 3. Effective date This Act and the amendments made by this Act shall take effect on the date that is 18 months after the date of the enactment of this Act.

Passed the House of Representatives May 23, 2016. Karen L. Haas, Clerk.