[Federal Register Volume 74, Number 2 (Monday, January 5, 2009)]
[Notices]
[Pages 312-313]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-31389]


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DEPARTMENT OF HOUSING & URBAN DEVELOPMENT

[Docket No. FR-5271-N-01]


S.A.F.E. (SAFE) Mortgage Licensing Act; Notification of 
Availability of Model Legislation

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing 
Commissioner, HUD.

ACTION: Notice.

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SUMMARY: This notice announces that the Conference of State Bank 
Supervisors and the American Association of Residential Mortgage 
Regulators have developed model legislation to assist states in meeting 
the minimum requirements of the SAFE Mortgage Licensing Act. HUD has 
reviewed this model legislation and finds that it meets the minimum 
requirements of the SAFE Mortgage Licensing Act. The model legislation 
is available on HUD's Web site at http://www.hud.gov/offices/hsg/sfh/reguprog.cfm, along with HUD commentary on certain provisions of the 
statute, and the model legislation.

FOR FURTHER INFORMATION CONTACT: For information contact William 
Matchneer, Office of Regulatory Affairs and Manufactured Housing, 
Office of Housing, Department of Housing and Urban Development, 451 7th 
Street, SW., Washington, DC 20410-8000; telephone number 202-708-6401. 
(This is not a toll-free number.) Persons with hearing or speech 
impairments may access this number through TTY by calling the toll-free 
Federal Information Relay Service at 1-800-877-8339.

SUPPLEMENTARY INFORMATION:
    The Secure and Fair Enforcement Mortgage Licensing Act of 2008 
(SAFE Act or Act) was enacted into law on July 30, 2008, as part of the 
Housing and Economic Recovery Act of 2008. This new law encourages the 
Conference of State Bank Supervisors (CSBS) and the American 
Association of Residential Mortgage Regulators (AARMR) to establish a 
nationwide mortgage

[[Page 313]]

licensing system for the residential mortgage industry for the purpose 
of providing (1) uniform state-licensing application and reporting 
requirements for residential mortgage loan originators, and (2) a 
comprehensive database by which such mortgage loan originators may be 
found and tracked. This new law also imposes the obligation on states 
to adopt mortgage licensing requirements that meet the minimum 
standards specified in the law in lieu of HUD establishing and 
maintaining a licensing system for loan originators.
    To aid and facilitate states' compliance with the requirements of 
the SAFE Act, the Act directs the establishment of a nationwide 
mortgage licensing system and registry (NMLSR), to be developed and 
maintained by CSBS and AARMR. If HUD determines that a state's mortgage 
loan originator licensing standards do not meet the minimum 
requirements of the Act, HUD must implement and administer a licensing 
system for that state. A loan originator in such a state would have to 
comply with the requirements of HUD's SAFE Act-compliant licensing 
system for that state as well as with any applicable state 
requirements. A HUD license for a state would be valid for that state 
only, even if HUD must implement licensing systems in multiple states. 
Additionally, if HUD determines that the NMLSR is failing to meet the 
requirements and purposes of the SAFE Act, HUD must establish a system 
that meets the requirements of the SAFE Act. While states are charged 
with enacting licensing standards that meet the requirements of the 
SAFE Act, overall responsibility for interpretation, implementation, 
and compliance of the SAFE Act rests with HUD.
    To assist states in complying with the requirements of the SAFE 
Act, the CSBS and AARMR have developed model legislation. This 
legislation was developed through outreach to and consultation with the 
states and industry. HUD has reviewed this model legislation and finds 
that it meets the minimum requirements of the SAFE Act. State 
legislation that follows the provisions of the model state law will not 
be determined by HUD to be noncompliant with SAFE Act.
    The model legislation, reviewed by HUD and found to be compliant 
with the SAFE Act, is available on HUD's Web site at http://www.hud.gov/offices/hsg/sfh/reguprog.cfm. Additionally, the Web site 
provides HUD commentary on certain provisions of the SAFE Act, and the 
model legislation.

    Dated: December 24, 2008.
Brian D. Montgomery,
Assistant Secretary for Housing--Federal Housing Commissioner.
 [FR Doc. E8-31389 Filed 1-2-09; 8:45 am]
BILLING CODE 4210-67-P