UST: Introduction

Question 1

What are the documents, laws, and regulations that specify requirements for loan originator licensing?

Answer 1

• Title V, the Secure and Fair Enforcement for Mortgage Licensing Act (12 U.S.C. §5101, et seq.)
• Regulation H (12 C.F.R. §1008, et seq.), and
• The State Model Language for Implementation of the S.A.F.E. Mortgage Licensing Act (MSL)

Question 2

What was a challenge for MLO’s before the UST and SAFE act?

Answer 2

The regulation of loan originators was inconsistent and individuals who sought licensing in more than one state faced compliance challenges of meeting different licensing standards in different jurisdictions.

Question 3

What is HERA?

Answer 3

Housing and Economic Recovery Act of 2008 which focused on subprime lending.

Question 4

Who was involved in the creation of model legislation to help state legislators draft the federally-mandated legislation?

Answer 4

Department of Housing and Urban Development (HUD)

Question 5

Who wrote the model law and submitted it to HUD for approval?

Answer 5

The Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR)

Question 6

What is important for MLO’s to understand about the model legislation?

Answer 6

The model legislation reflects the minimum licensing standards and that the S.A.F.E. Act does not prohibit states from creating stricter licensing requirements (AZ). Therefore MLO’s should be aware of any state laws and regulations that have higher licensing standards.

Question 7

What is Regulation H?

Answer 7

Regulations written by HUD that provide a more detailed outline of the standards that state licensing systems and loan originators are required to meet

Question 8

What else does the SAFE act give HUD?

Answer 8

• The responsibility of monitoring states’ compliance with the S.A.F.E. Act, and
• The authority to establish and maintain a licensing system in any state where a program for licensing loan originators was not in place

Question 9

What transfer of authority took place on July 21, 2011.

Answer 9

The transfer of authority from HUD to CFPB now enforcing the SAFE act.