Mortgage Law Blog, LLC

The American Association of Residential Mortgage Regulators and Conference of State Bank Supervisors have issued model legislation for guidance to state regulators under the SAFE Act.

AARMR’s website states in part:

The S.A.F.E. Act, signed into law by President Bush on July 30, 2008, requires state action in your next legislative session to avoid HUD intervention in the licensing of mortgage loan originators (see Section 1508 of Title V). A CSBS/AARMR ten state working group has been meeting since July 31st to establish the minimum requirements for state adoption of the S.A.F.E. Act requirements and to provide states with a Model State Law (MSL) for uniform implementation.

AARMR has provided a side-by-side comparison between the SAFE Act and the model proposed state legislation.

For the side-by-side comparison, click here.

For a copy of the model law, click here.

Tags: Association Activities, Consumer Protection, Legislation, Mortgage Banking - General, State Licensing by the Editor
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Today, a new system aimed at simplifying mortgage licensing requirements launched for seven states:  Iowa, Kentucky, Massachusetts, Nebraska, New York, and Rhode Island. 

The system, called the Nationwide Mortgage Licensing System, is owned and operated by the State Regulatory Registry LLC, a subsidiary of the Conference of State Bank Supervisors.  NMLS is a joint project of the CSBS and the American Association of Residential Mortgage Regulators.  The project began approximately four years ago with the stated goals of improving supervision, streamlining compliance and enhancing consumer protection.  The NMLS seeks to help streamline the often complex and redundant licensing processes imposed on lenders, loan officers and control persons on mortgage bankers by the sundry states. 

So far, 42 states have signed a letter of intent to use the NMLS.  Together, these states hold bragging rights to over 54,000 company licenses, 48,000 branch licenses, and 277,000 loan officer licenses - an impressive number of licenses (and fees). 

The press release from the CSBS stated:

Today a new era for mortgage regulation in the United States began with the official start of the states’ Nationwide Mortgage Licensing System. Created by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators, the Internet-based system that will serve as the foundation of a coordinated state mortgage regulatory framework. “This is the culmination of a four-year effort by state regulators to provide a new and more solid foundation for mortgage supervision and consumer protection,” said CSBS Executive Vice President John Ryan. “NMLS provides the underpinnings of a regulatory framework to address the weaknesses of our current fragmented and complex system of mortgage origination and supervision,” he said. The launch of NMLS is just one part of a multi-faceted plan being adopted by CSBS and the AARMR to improve regulation and bring about greater uniformity across state lines in mortgage supervision. These efforts include coordinated supervision, improved regulatory practices and consistent standards for testing and training for mortgage originators. To accomplish this, many states have changed or are in the process of changing their laws and regulations.  

You can bet the regulated masses are happy to see at least this small step in the right direction.  They have miles to go before they sleep.   

Tags: Consumer Protection, Mortgage Banking - General, State Licensing by the Editor
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