[Federal Register Volume 76, Number 54 (Monday, March 21, 2011)]
[Notices]
[Pages 15309-15311]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-6568]


=======================================================================
-----------------------------------------------------------------------

FEDERAL DEPOSIT INSURANCE CORPORATION


Privacy Act of 1974, as Amended; System of Records; Nationwide 
Mortgage Licensing System and Registry

AGENCY: Federal Deposit Insurance Corporation.

ACTION: Notice of New Privacy Act System of Records.

-----------------------------------------------------------------------

SUMMARY: The Federal Deposit Insurance Corporation (FDIC) proposes to 
add one new system of records to its existing inventory of record 
systems subject to the Privacy Act of 1974 (5 U.S.C. 552a). This new 
system of records is entitled Nationwide Mortgage Licensing System and 
Registry and will be used to register residential mortgage loan 
originators employed by federally regulated depository institutions as 
required by the Secure and Fair Enforcement for Mortgage Licensing Act 
(S.A.F.E. Act), 12 U.S.C. 5101. We hereby publish this notice for 
comment on the proposed system of records.

DATES: Comments on the proposed system of records must be received on 
or before April 20, 2011. The proposed systems of records will become 
effective 45 days following publication in the Federal Register, unless 
a superseding notice to the contrary is published before that date.

ADDRESSES: You may submit written comments by any of the following 
methods:
     Agency Web site: Located at http://www.fdic.gov/regulations/laws/federal/propose.html.
    Follow instructions for submitting comments on this Web site.
     E-mail: Send to [email protected]. Include ``Notice of New 
System of Records'' in the subject line.
     Mail: Send to Hugo A. Zia, Supervisory Counsel, FOIA/
Privacy Act Group, Attention: Comments, New Privacy Act System of 
Records, 550 17th Street, NW., Washington, DC 20429.

All submissions should refer to ``Notice of New Privacy Act System of 
Records.'' By prior appointment, comments may also be inspected and 
photocopied in the FDIC Public Information Center, 3501 North Fairfax 
Drive, Room E-1005, Arlington, Virginia 22226, between 9 a.m. and 4 
p.m. (EST), Monday to Friday.

FOR FURTHER INFORMATION CONTACT: Hugo A. Zia, Supervisory Counsel, 
FOIA/Privacy Act Group, FDIC, 550 17th Street, NW., Washington, DC 
20429, (703) 562-2671.

SUPPLEMENTARY INFORMATION: In accordance with the Privacy Act of 1974, 
as amended, the FDIC has conducted a review of its Privacy Act systems 
of records and has determined that it needs to add one new system of 
records to cover personal information submitted by residential mortgage 
loan originators and maintained in the Nationwide Mortgage Licensing 
System and Registry (NMLSR) pursuant to the S.A.F.E. Act. The new 
system of records is designated as FDIC-30-64-0032 (Nationwide Mortgage 
Licensing System and Registry).
    The S.A.F.E. Act requires an employee of a bank, savings 
association, credit union or Farm Credit System institution and certain 
of their subsidiaries that are regulated by a Federal banking agency or 
the Farm Credit Administration who acts as a residential mortgage loan 
originator to register with the NMLSR, obtain a unique identifier, and 
maintain this registration. The NMLSR collects and stores information 
concerning a residential mortgage loan originator's identity including 
personal history and experience and may include information related to 
any administrative, civil, or criminal findings by any governmental 
jurisdiction. The information will be collected by entering information 
online into the NMLSR Web site. Once collected, the information will be 
maintained in the NMLSR electronic system in a secured environment.
    The NMLSR is a Web-based system owned and operated by the State 
Regulatory Registry LLC (SRR). SRR is a limited-liability company 
established by Conference of State Bank Supervisors (CSBS) and the 
American Association of Residential Mortgage Regulators as a subsidiary 
of CSBS to develop and operate nationwide systems for State regulators 
in the financial services industry. SRR has contracted with the 
Financial Industry Regulatory Authority (FINRA) to build and maintain 
the NMLSR system. FINRA operates similar systems in the securities 
industry. More information about this system is available at http://mortgage.nationwidelicensingsystem.org/.
FDIC-30-64-0032

SYSTEM NAME:
    Nationwide Mortgage Licensing System and Registry.

SECURITY CLASSIFICATION:
    Unclassified but sensitive.

SYSTEM LOCATION:
    Financial Industry Regulatory Authority, 9509 Key West Avenue,

[[Page 15310]]

Rockville, MD 20850 (Background Check System data).
    HP Enterprise Services Charlotte SMC, 9014 Research Drive, 
Charlotte, NC 28262 (Production Center).
    HP Enterprise Services Plano SMC, 6901 Windcrest Drive, Plano, TX 
75024 (Dual Use Test and Disaster Recovery Facility).

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    Residential mortgage loan originators (MLOs) employed with: a 
depository institution; a subsidiary owned and controlled by a 
depository institution and regulated by a Federal banking agency; or an 
institution regulated by the Farm Credit Administration.

CATEGORIES OF RECORDS IN THE SYSTEM:
    Contains information documenting identity, including name and 
former names, Social Security number, gender, date of birth, and place 
of birth; home and business contact information; the date on which the 
MLO becomes an employee with the institution; criminal history, 
including the results of a background check; financial services-related 
employment history; civil, arbitration, regulatory, and disciplinary 
actions arising out of the MLO's financial services; and licensure 
revocations and suspensions.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    Section 1507 of the Secure and Fair Enforcement for Mortgage 
Licensing Act (S.A.F.E. Act (12 U.S.C. 5106)).

PURPOSE(S):
    The system is utilized to register MLOs employed by state and 
federally regulated depository institutions in a national registry, as 
required by the S.A.F.E. Act. The information is maintained to support 
regulatory supervision while providing the general public with access 
to certain information concerning MLOs including names and employment 
histories.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH USES:
    In addition to those disclosures generally permitted under 5 U.S.C. 
552a(b) of the Privacy Act, all or a portion of the records or 
information contained in this system may be disclosed outside the FDIC 
as a routine use as follows:
    (1) To appropriate Federal, State, and local authorities 
responsible for investigating or prosecuting a violation of, or for 
enforcing or implementing a statute, rule, regulation, or order issued, 
when the information indicates a violation or potential violation of 
law, whether civil, criminal, or regulatory in nature, and whether 
arising by general statute or particular program statute, or by 
regulation, rule, or order issued pursuant thereto;
    (2) To a court, magistrate, or other administrative body in the 
course of presenting evidence, including disclosures to counsel or 
witnesses in the course of civil discovery, litigation, or settlement 
negotiations or in connection with criminal proceedings, when the FDIC 
is a party to the proceeding or has a significant interest in the 
proceeding, to the extent that the information is determined to be 
relevant and necessary;
    (3) To a congressional office in response to an inquiry made by the 
congressional office at the request of the individual who is the 
subject of the record;
    (4) To appropriate Federal, State, local authorities, and other 
entities when (a) it is suspected or confirmed that the security or 
confidentiality of information in the system has been compromised; (b) 
there is a risk of harm to economic or property interests, identity 
theft or fraud, or harm to the security or integrity of this system or 
other systems or programs that rely upon the compromised information; 
and (c) the disclosure is made to such agencies, entities, and persons 
who are reasonably necessary to assist in efforts to respond to the 
suspected or confirmed compromise and prevent, minimize, or remedy such 
harm; and
    (5) To appropriate Federal agencies and other public authorities 
for use in records management inspections;
    (6) To other Federal, State or foreign financial institutions 
supervisory or regulatory authorities;
    (7) To depository institutions or their subsidiaries for use in 
registering employees as mortgage loan originators or renewing employee 
registrations;
    (8) To appropriate Federal, State, and local authorities, agencies, 
arbitrators, and other parties responsible for processing any personnel 
actions or conducting administrative hearings or corrective actions or 
grievances or appeals, or if needed in the performance of other 
authorized duties;
    (9) To contractors, grantees, volunteers, and others performing or 
working on a contract, service, grant, cooperative agreement, or 
project for the Federal Government;
    (10) To the appropriate governmental or self-regulatory 
organizations when relevant to the organization's regulatory or 
supervisory responsibilities or if the information is relevant to a 
known or suspected violation of a law or licensing standard within that 
organization's jurisdiction;
    (11) To third parties when the information relates to the 
employment history of, and publicly adjudicated disciplinary and 
enforcement actions against, mortgage loan originators that is included 
in Nationwide Mortgage Licensing System and Registry for access by the 
public in accordance with section 1507 of the S.A.F.E. Act.

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, 
AND DISPOSING OF RECORDS IN THE SYSTEM:
Storage:
    Records are stored in electronic media.

Retrievability:
    Records are retrieved by an individual MLO's name or unique 
identification number and by the financial institution's name.

Safeguards:
    Records are stored in a locked environment. Access to the system is 
limited to users who satisfy a comprehensive background check. The 
extent to which users have access is based on pre-determined roles. All 
data exchanges take place over an encrypted network.

Retention and Disposal:
    There is presently no records control schedule covering the 
disposition and retention of FDIC records maintained in NMLSR. FDIC 
staff will work with the National Archives and Records Administration 
to establish disposition and retention authority for FDIC records 
maintained in NMLSR. No data or other FDIC records of the system will 
be destroyed prior to obtaining such disposition and retention 
authority.

SYSTEM MANAGER(S) AND ADDRESS:
    Director, Division of Risk Management Supervision, FDIC, 550 17th 
Street, NW., Washington, DC 20429.
    State Regulatory Registry LLC, 1155 Connecticut Avenue, NW., Fifth 
Floor, Washington, DC 20036.

NOTIFICATION PROCEDURES:
    Records created by a MLO in the Nationwide Mortgage Licensing 
System and Registry may be accessed or amended directly by the MLO. If 
assistance is required to access or amend such a record contact the 
NMLS Call Center at (240) 386-4444 or State Regulatory Registry LLC, 
1155 Connecticut Avenue, NW., Fifth Floor, Washington, DC 20036. Any 
other individual wishing to determine if he or she is named in this 
system of records

[[Page 15311]]

or who is seeking access or amendment to records maintained in this 
system of records must submit a request in writing to [email protected] 
or to the Legal Division, FOIA/Privacy Act Group, FDIC, 550 17th 
Street, NW., Washington, DC 20429, in accordance with FDIC regulations 
at 12 CFR part 310. The request to the FDIC should contain: (1) A 
statement that it is made pursuant to the Privacy Act of 1974, (2) the 
name of the system of records expected to contain the records requested 
or a concise description of such system of records, (3) necessary 
information to verify the identity of the requester, including the 
requester's name and residence address, (4) a notarized statement 
attesting to the requester's identity, and (5) any other information 
that may assist in the rapid identification of the records for which 
access or amendment is being requested.

RECORD ACCESS PROCEDURES:
    Same as ``Notification Procedures'' above.

CONTESTING RECORD PROCEDURES:
    Same as ``Notification Procedures'' above except that the envelope 
mailed to the FDIC should be clearly marked ``Privacy Act Amendment 
Request.'' A request to the FDIC for amendment of a record should 
contain the information set forth in ``Notification Procedures'' above. 
In addition, the request should also: (1) Specify the portion of the 
record requested to be amended, and (2) describe the nature of and 
reasons for each requested amendment in accordance with FDIC 
regulations at 12 CFR part 310.

RECORD SOURCE CATEGORIES:
    Information maintained in this system is obtained from MLOs who 
submit information to the registry and the results of FBI background 
checks.

EXEMPTIONS CLAIMED FOR THE SYSTEM:
    None.

    By order of the Board of Directors.

    Dated at Washington, DC, this 15th day of March, 2011.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2011-6568 Filed 3-18-11; 8:45 am]
BILLING CODE 6714-01-P