House Passes SAFE Act Confidentiality and Privilege Enhancement Act

July 30, 2014 The U.S. House of Representatives has passed the SAFE Act Confidentiality and Privilege Enhancement Act (H.R. 4626) by voice vote.

NASCUS submitted written testimony regarding H.R. 4626 for the July 15 hearing of the Subcommittee on Financial Institutions and Consumer Credit . The hearing was entitled, “Examining Regulatory Relief Proposals for Community Financial Institutions, Part II,” and addressed, among other legislation, H.R. 4626. The Act will allow state regulators to leverage the Nationwide Mortgage Licensing System and Registry (NMLS) to license, track and share information on a variety of financial services entities while ensuring the confidentiality of this shared information between state and federal financial services regulators.

The NMLS is owned and operated by the State Regulatory Registry LLC (SRR), a wholly owned subsidiary of the Conference of State Bank Supervisors (CSBS), and was created by CSBS and the American Association of Residential Mortgage Regulators (AARMR). It serves as the system of record for non-depository financial services licensing or registration in participating state agencies, including the District of Columbia and U.S. Territories of Puerto Rico, the U.S. Virgin Islands, and Guam. The NMLS is the sole system of licensure for mortgage companies for 57 state agencies and for the licensure of Mortgage Loan Originators (MLOs) for 60 state and territorial agencies. Several states also currently manage other non-depository financial services entities, such as money transmitters, pawnbrokers, check cashers, and payday lenders, through the NMLS.

NMLS is also the system of record for the registration of depositories, subsidiaries of depositories, and MLOs under the Consumer Financial Protection Bureau’s Regulation G (S.A.F.E. Mortgage Licensing Act – Federal Registration of Residential Mortgage Loan Originators).

The Senate passed an identical bill (S.947) in December, 2013. However, since the bills were passed separately either the House or Senate will need to pass the other chamber's version of the legislation before it can be sent to the President to be signed into law. NASCUS will continue to monitor this proposed reform.


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