U.S. House Passes Bill to Change SAFE Licensing Rules
By Anna DeSimone
SAFE Transitional Licensing Act of 2015 moves to Senate
May 22, 2016, the United States House of Representatives passed a bill named the SAFE Transitional Licensing Act of 2015. The act will permit registered loan originators to move to another state to continue originating loans for as long as 120 days while applying for a new license. The change also will allow originators to continue originating loans if they switch from a depository institution to a nonbank lender.
Under the current rules of the SAFE Mortgage Licensing Act, an LO that moves between states or from a bank to a nonbank is required to wait for a new license before they can begin originating at their new job.
The bill is sponsored by Rep. Steve Stivers, R-OH, who said that without this bill, “a loan officer who moves from a federally-insured institution to a nonbank lender must sit on their hands for weeks, even months, while they meet the SAFE Act’s licensing and testing requirements.” This bill would change that, and now it moves on to the Senate with bipartisan support.
According to the Mortgage Bankers Association, the passage of the SAFE Transitional Licensing Act is welcomed and the trade group urged the Senate to act quickly and pass the bill as well.
About the Author
Anna DeSimone is President and Founder of Bankers Advisory and Principal of CliftonLarsonAllen LLP. She can be reached at Anna@bankersadvisory.com
Anna DeSimone founded Bankers Advisory in 1986 and is a nationally recognized authority in residential mortgage lending. She has received numerous industry awards and has authored more than 40 best practices guides and hundreds of articles.
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