Magazine article Mortgage Banking

Dodd-Frank Act Transfers SAFE Act Authority to New Consumer Bureau

Magazine article Mortgage Banking

Dodd-Frank Act Transfers SAFE Act Authority to New Consumer Bureau

Article excerpt

The massive new financial reform law will transfer to a newly created Consumer Financial Protection Bureau the authority to administer the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act).

In commentary published on July 8, Washington, D.C.-based K&L Gates attorneys Laurence Platt and Kristie Kully wrote, "The Dodd-Frank [Wall Street Reform and Consumer Protection] Act would transfer to the [Consumer Financial Protection] Bureau the authority to administer the SAFE Act. This means that the bureau will be charged with developing and maintaining a system for registering with the NMLS [Nationwide Mortgage Licensing System and Registry] individual mortgage loan originator employees of a depository institution, regardless of the institution's size; employees of a subsidiary that is owned and controlled by a depository institution and regulated by a federal banking agency; and employees of an institution regulated by the Farm Credit Administration."

The SAFE Act required federal banking agencies to develop such a system by July 2009, the commentary noted. However, the agencies and the NMLS have not yet completed the system. "The new law extends the deadline for developing the NMLS registration system for those mortgage loan originator employees for another year (July 2011), which unfortunately still could occur before the bureau is operational," Platt and Kully noted. …

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