II 111th CONGRESS 2d Session S. 3106 IN THE SENATE OF THE UNITED STATES March 11, 2010 Mrs. Hagan (for herself, Mr. Burr, Mr. Isakson, Mr. Merkley, and Mr. Chambliss) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To authorize States to exempt certain nonprofit housing organizations from the licensing requirements of the S.A.F.E. Mortgage Licensing Act of 2008.

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Short title

This Act may be cited as the Nonprofit Mortgage Licensing Clarification Act of 2010.

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Exemption of nonprofit housing organizations

Section 1504 of the S.A.F.E. Mortgage Licensing Act of 2008 (12 U.S.C. 5103) is amended— (1)in subsection (a), by inserting before the first comma the following: and to subsection (c); and (2)by adding at the end the following new subsection: (c)

Authority for States To exempt nonprofit housing organizations

A State may, by State law, exempt from the requirement under subsection (a)(1) (relating to registration or licensing) organizations that are exempt from taxation pursuant to section 501(c)(3) of the Internal Revenue Code of 1986, and any employees and agents of such organizations acting as loan originators for such organizations, but only to the extent that such an organization— (1)engages in the business of a loan originator for the purpose of promoting or facilitating homeownership for poor or low-income, disabled, or other disadvantaged persons or families, and in originating such loans offers loans— (A)at interest rates that are lower than the bank prime loan rate, as determined under the Federal Reserve Statistical Release of selected interest rates (commonly referred to as the H.15) by the Board of Governors of the Federal Reserve System, for the last day of the most recent weekly release of such rates; or (B)that are, after adjusting for inflation, no-interest loans or loans with interest rates significantly below the interest rates for loans for purchase of single-family housing generally available in the market; and (2)does not otherwise engage in the business of a loan originator or mortgage broker. .