Final SAFE Act Rule Published by Federal Agencies

July 28, 2010 — Final rules for the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (S.A.F.E. Act), were published in the Federal Register on July 28, detailing the requirements for registration of mortgage loan originators at financial institutions.

The S.A.F.E. Act requires residential mortgage loan originators who are employees of agency-regulated institutions to be registered with the Nationwide Mortgage Licensing System and Registry (Registry). The registry is a database licensing system for mortgage loan originators by the states.

Once the system goes live, credit unions and other financial institutions will have 180 days for their mortgage loan originators to register within the system. The NCUA will notify credit unions when the system goes live and the 180 day period begins. The registry is expected to go live as soon as January 2011.

As part of this registration process, residential mortgage loan originators must furnish to the registry information and fingerprints for background checks.

To view the final rules, follow this link.