Frequently asked questions (FAQs) regarding last year’s regulatory relief law amendments to the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) that allow temporary authority for eligible loan originators awaiting licensing in a new state were published Wednesday by the Consumer Financial Protection Bureau (CFPB).
The FAQs note that the 2018 Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA, S. 2155) as Nov. 24, 2019, establishes temporary authority for eligible loan originators who have applied for a new state loan originator license to operate in that state while they await approval of their application. But they note that not all loan originators are eligible.
“Temporary authority applies to loan originators who were previously registered or state-licensed for a certain period of time before applying for a new state license,” the bureau states in the first of four FAQs on the SAFE Act amendments. “Additionally, loan originators are eligible for temporary authority only if they have applied for a license in the new state, are employed by a state-licensed mortgage company in the new state, and satisfy certain criminal and adverse professional history requirements described in the SAFE Act.”
The FAQs also note that the EGRRCPA does not affect the permissibility of transitional licensing under the SAFE Act. “The EGRRCPA amendments do not impact the ability of a state to consider or rely on a prior state’s findings when considering a State-Licensed Loan Originator’s license application, as discussed in the Bureau’s 2012 bulletin,” the bureau noted.
The page housing the bulletin (Bulletin 2012-05), however, also includes a disclaimer: The 2012 bulletin does not address the EGRRCPA amendments to the SAFE Act.