[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2121 Reported in House (RH)]

<DOC>





                                                 Union Calendar No. 454
114th CONGRESS
  2d Session
                                H. R. 2121

                          [Report No. 114-584]

   To amend the S.A.F.E. Mortgage Licensing Act of 2008 to provide a 
temporary license for loan originators transitioning between employers, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 29, 2015

Mr. Stivers (for himself, Ms. Sewell of Alabama, Mr. Westmoreland, Mrs. 
  Beatty, Mr. Messer, and Ms. Sinema) introduced the following bill; 
       which was referred to the Committee on Financial Services

                              May 23, 2016

  Additional sponsors: Mr. Perlmutter, Mrs. Carolyn B. Maloney of New 
York, Mr. Huizenga of Michigan, Mr. Carney, Mr. Mulvaney, Mr. Sherman, 
  Mr. Tipton, Mr. Luetkemeyer, Mr. Ross, Mr. Delaney, Mr. Upton, Mr. 
 Kildee, Mr. Griffith, Mr. Sires, Ms. Moore, Mr. Rigell, Mr. Cleaver, 
 Mr. Sean Patrick Maloney of New York, Mr. David Scott of Georgia, Mr. 
 Meeks, Mrs. Love, Mr. Polis, Mr. Fincher, Mr. Larson of Connecticut, 
 Mr. Himes, Mr. Neugebauer, Mr. Quigley, Mr. Foster, Mr. Poliquin, Mr. 
 Yoder, Mr. Coffman, Mr. Williams, Mr. Pittenger, Mr. Posey, Mr. Barr, 
Mrs. Comstock, Mr. Ashford, Mr. Moolenaar, Mr. Forbes, Mrs. Blackburn, 
Mrs. Miller of Michigan, Ms. Michelle Lujan Grisham of New Mexico, Mr. 
 Ruppersberger, Mr. Renacci, Mr. Murphy of Pennsylvania, and Mr. Turner

                              May 23, 2016

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
 [For text of introduced bill, see copy of bill as introduced on April 
                               29, 2015]


_______________________________________________________________________

                                 A BILL


 
   To amend the S.A.F.E. Mortgage Licensing Act of 2008 to provide a 
temporary license for loan originators transitioning between employers, 
                        and for other purposes.


 


    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. ELIMINATING BARRIERS TO JOBS FOR LOAN ORIGINATORS.

    (a) In General.--The S.A.F.E. Mortgage Licensing Act of 2008 (12 
U.S.C. 5101 et seq.) is amended by adding at the end the following:

``SEC. 1518. EMPLOYMENT TRANSITION OF LOAN ORIGINATORS.

    ``(a) Temporary Authority to Originate Loans for Loan Originators 
Moving From a Depository Institution to a Non-depository Institution.--
            ``(1) In general.--Upon employment by a State-licensed 
        mortgage company, an individual who is a registered loan 
        originator shall be deemed to have temporary authority to act 
        as a loan originator in an application State for the period 
        described in paragraph (2) if the individual--
                    ``(A) has not had an application for a loan 
                originator license denied, or had such a license 
                revoked or suspended in any governmental jurisdiction;
                    ``(B) has not been subject to or served with a 
                cease and desist order in any governmental jurisdiction 
                or as described in section 1514(c);
                    ``(C) has not been convicted of a felony that would 
                preclude licensure under the law of the application 
                State;
                    ``(D) has submitted an application to be a State-
                licensed loan originator in the application State; and
                    ``(E) was registered in the Nationwide Mortgage 
                Licensing System and Registry as a loan originator 
                during the 12-month period preceding the date of 
                submission of the information required under section 
                1505(a).
            ``(2) Period.--The period described in paragraph (1) shall 
        begin on the date that the individual submits the information 
        required under section 1505(a) and shall end on the earliest 
        of--
                    ``(A) the date that the individual withdraws the 
                application to be a State-licensed loan originator in 
                the application State;
                    ``(B) the date that the application State denies, 
                or issues a notice of intent to deny, the application;
                    ``(C) the date that the application State grants a 
                State license; or
                    ``(D) the date that is 120 days after the date on 
                which the individual submits the application, if the 
                application is listed on the Nationwide Mortgage 
                Licensing System and Registry as incomplete.
    ``(b) Temporary Authority to Originate Loans for State-licensed 
Loan Originators Moving Interstate.--
            ``(1) In general.--A State-licensed loan originator shall 
        be deemed to have temporary authority to act as a loan 
        originator in an application State for the period described in 
        paragraph (2) if the State-licensed loan originator--
                    ``(A) meets the requirements of subparagraphs (A), 
                (B), (C), and (D) of subsection (a)(1);
                    ``(B) is employed by a State-licensed mortgage 
                company in the application State; and
                    ``(C) was licensed in a State that is not the 
                application State during the 30-day period preceding 
                the date of submission of the information required 
                under section 1505(a) in connection with the 
                application submitted to the application State.
            ``(2) Period.--The period described in paragraph (1) shall 
        begin on the date that the State-licensed loan originator 
        submits the information required under section 1505(a) in 
        connection with the application submitted to the application 
        State and end on the earliest of--
                    ``(A) the date that the State-licensed loan 
                originator withdraws the application to be a State-
                licensed loan originator in the application State;
                    ``(B) the date that the application State denies, 
                or issues a notice of intent to deny, the application;
                    ``(C) the date that the application State grants a 
                State license; or
                    ``(D) the date that is 120 days after the date on 
                which the State-licensed loan originator submits the 
                application, if the application is listed on the 
                Nationwide Mortgage Licensing System and Registry as 
                incomplete.
    ``(c) Applicability.--
            ``(1) Any person employing an individual who is deemed to 
        have temporary authority to act as a loan originator in an 
        application State pursuant to this section shall be subject to 
        the requirements of this title and to applicable State law to 
        the same extent as if such individual was a State-licensed loan 
        originator licensed by the application State.
            ``(2) Any individual who is deemed to have temporary 
        authority to act as a loan originator in an application State 
        pursuant to this section and who engages in residential 
        mortgage loan origination activities shall be subject to the 
        requirements of this title and to applicable State law to the 
        same extent as if such individual was a State-licensed loan 
        originator licensed by the application State.
    ``(d) Definitions.--In this section, the following definitions 
shall apply:
            ``(1) State-licensed mortgage company.--The term `State-
        licensed mortgage company' means an entity licensed or 
        registered under the law of any State to engage in residential 
        mortgage loan origination and processing activities.
            ``(2) Application state.--The term `application State' 
        means a State in which a registered loan originator or a State-
        licensed loan originator seeks to be licensed.''.
    (b) Table of Contents Amendment.--The table of contents in section 
1(b) of the Housing and Economic Recovery Act of 2008 (42 U.S.C. 4501 
note) is amended by inserting after the item relating to section 1517 
the following:

``Sec. 1518. Employment transition of loan originators.''.

SEC. 2. AMENDMENT TO CIVIL LIABILITY OF THE BUREAU AND OTHER OFFICIALS.

    Section 1513 of the S.A.F.E. Mortgage Licensing Act of 2008 (12 
U.S.C. 5112) is amended by striking ``are loan originators or are 
applying for licensing or registration as loan originators'' and 
inserting ``are applying for licensing or registration using the 
Nationwide Mortgage Licensing System and Registry''.

SEC. 3. EFFECTIVE DATE.

    This Act and the amendments made by this Act shall take effect on 
the date that is 18 months after the date of the enactment of this Act.
                                                 Union Calendar No. 454

114th CONGRESS

  2d Session

                               H. R. 2121

                          [Report No. 114-584]

_______________________________________________________________________

                                 A BILL

   To amend the S.A.F.E. Mortgage Licensing Act of 2008 to provide a 
temporary license for loan originators transitioning between employers, 
                        and for other purposes.

_______________________________________________________________________

                              May 23, 2016

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed