[Federal Register Volume 77, Number 114 (Wednesday, June 13, 2012)]
[Notices]
[Pages 35359-35361]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-14383]


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BUREAU OF CONSUMER FINANCIAL PROTECTION


Privacy Act of 1974, as Amended

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Notice of proposed Privacy Act System of Records.

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SUMMARY: In accordance with the Privacy Act of 1974, as amended, the 
Bureau of Consumer Financial Protection, hereinto referred to as the 
Consumer Financial Protection Bureau (``CFPB'' or the ``Bureau''), 
gives notice of the establishment of a Privacy Act System of Records.

DATES: Comments must be received no later than July 13, 2012. The new 
system of records will be effective July 23, 2012 unless the comments 
received result in a contrary determination.

ADDRESSES: You may submit comments by any of the following methods:
     Electronic: [email protected].
     Mail or Hand Delivery/Courier: Claire Stapleton, Chief 
Privacy Officer, Consumer Financial Protection Bureau, 1700 G Street 
NW., Washington, DC 20552.
    Comments will be available for public inspection and copying at 
1700 G Street

[[Page 35360]]

NW., Washington, DC 20552, on official business days between the hours 
of 10 a.m. and 5 p.m. Eastern Time. You can make an appointment to 
inspect comments by telephoning (202) 435-7220. All comments, including 
attachments and other supporting materials, will become part of the 
public record and subject to public disclosure. You should submit only 
information that you wish to make available publicly.

FOR FURTHER INFORMATION CONTACT: Claire Stapleton, Chief Privacy 
Officer, Consumer Financial Protection Bureau, 1700 G Street NW., 
Washington, DC 20552, (202) 435-7220.

SUPPLEMENTARY INFORMATION: The Dodd-Frank Wall Street Reform and 
Consumer Protection Act (``Act''), Public Law 111-203, Title X, 
established the CFPB. The CFPB administers, enforces, and implements 
federal consumer financial law, and, among other powers, has authority 
to protect consumers from unfair, deceptive, and abusive practices when 
obtaining consumer financial products or services.
    Pursuant to Section 1100 of Title X of the Act, authority for the 
creation and maintenance of a national registration system for 
residential mortgage loan originators (``MLOs''), as required by 
Section 1507 of the Secure and Fair Enforcement for Mortgage Licensing 
Act, 12 U.S.C 5106 (the ``S.A.F.E. Act''), was transferred to the 
Bureau by an amendment to the S.A.F.E. Act.
    This national registration system, known as the Nationwide Mortgage 
Licensing System and Registry (``NMLSR'' or the ``Federal Registry''), 
allows MLOs employed by federal agency regulated institutions to 
register and submit required information about themselves and their 
backgrounds as required under Section 1507 of the S.A.F.E. Act, 12 
U.S.C. 5106, or its implementing regulation, 12 CFR 1007. More 
information about this system is available at http://mortgage.nationwidelicensingsystem.org/.
    Information in the NMLSR is available to the Bureau, the Federal 
banking agencies (as defined in Section 1503 of the S.A.F.E. Act, 12 
U.S.C. 5102(2)), and the Farm Credit Administration (``FCA''). An 
agency may retrieve non-public registration information only with 
respect to employees of the institutions subject to that agency's 
respective authority.
    While the NMLSR also contains information required by individual 
states relating to the licensing of individuals who are MLOs practicing 
in their states, the CFPB does not claim ownership for those records, 
nor does this notice cover such records.
    To ensure full compliance with the Privacy Act of 1974, 5 U.S.C. 
552a, as amended, the CFPB is providing notice of the transfer of 
authority for S.A.F.E. Act activities, including the regulations that 
require MLOs to register through the NMLSR, the existence and character 
of records maintained by the system, and the procedures by which such 
records may be accessed and amended by individuals as allowed under the 
Privacy Act and the Freedom of Information Act. The CFPB will maintain 
the records covered by this notice.
    The Dodd-Frank Wall Street Reform and Consumer Protection Act 
amended the S.A.F.E. Act and transferred responsibility for this system 
of records from the Federal banking agencies and the FCA to the Bureau. 
Those agencies that previously published notices establishing this 
system of records will revoke them upon this notice becoming effective, 
and this notice will serve as the sole notice for this system of 
records.
    The report of a new system of records has been submitted to the 
Committee on Oversight and Government Reform of the House of 
Representatives, the Committee on Homeland Security and Governmental 
Affairs of the Senate, and the Office of Management and Budget, 
pursuant to Appendix I to OMB Circular A-130, ``Federal Agency 
Responsibilities for Maintaining Records About Individuals,'' dated 
November 30, 2000, and the Privacy Act, 5 U.S.C. 552a(r).
    The system of records entitled, ``CFPB.019--Nationwide Mortgage 
Licensing System and Registry'' is published in its entirety below.

    Dated: June 8, 2012.
Claire Stapleton,
Chief Privacy Officer, Bureau of Consumer Financial Protection.
CFPB.019

SYSTEM NAME:
    Nationwide Mortgage Licensing System and Registry.

SYSTEM LOCATION:
    Consumer Financial Protection Bureau, 1700 G Street NW., 
Washington, DC 20552.
    State Regulatory Registry LLC, 1129 20th Street NW., Washington, DC 
20036.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    Individuals covered by this system include MLOs that are required 
to be registered under Section 1507 of the S.A.F.E. Act, 12 U.S.C. 
5106, or its implementing regulation, 12 CFR 1007.

CATEGORIES OF RECORDS IN THE SYSTEM:
    Records in this system contain identifying information about MLOs 
including: Names and former or other names used; Social Security 
numbers; genders; dates and places of birth; home and business contact 
information; employment dates; criminal histories, including the 
results of criminal background checks; financial services-related 
employment histories; civil, criminal, regulatory, and enforcement 
actions taken against MLOs in connection with their employment in the 
financial services industry; state license(s) held, status and license 
numbers, including license revocations and suspensions; fingerprint 
data; and unique identifiers assigned to NMLSR registrants.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    Secure and Fair Enforcement for Mortgage Licensing Act (S.A.F.E. 
Act), Public Law 110-289, Division A, Title V, Sections 1501-1517, 122 
Stat. 2654, 2810-2824 (July 30, 2008), codified at 12 U.S.C. 5106; The 
Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law 
111-203, Title X, Section 1100 (5), codified at 12 U.S.C. 5106.

PURPOSE(S):
    The system allows for the registration of MLOs employed by federal 
agency regulated institutions in a national registry, as required by 
the S.A.F.E. Act. The information is maintained to support federal 
regulatory oversight while providing the public with access to certain 
information concerning MLOs employed by institutions regulated by the 
Federal banking agencies or the FCA, including names and employment 
histories of those MLOs.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH USES:
    These records may be disclosed, consistent with the CFPB Disclosure 
of Records and Information Rules, promulgated at 12 CFR part 1070 et 
seq., to:
    (1) Appropriate agencies, entities, and persons when: (a) the CFPB 
suspects or has confirmed that the security or confidentiality of 
information in the system of records has been compromised; (b) the CFPB 
has determined that, as a result of the suspected or confirmed 
compromise, 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

[[Page 35361]]

or programs (whether maintained by the CFPB or another agency or 
entity) that rely upon the compromised information; and (c) the 
disclosure made to such agencies, entities, and persons is reasonably 
necessary to assist in connection with the CFPB's efforts to respond to 
the suspected or confirmed compromise and prevent, minimize, or remedy 
such harm;
    (2) Another federal or state agency to: (a) Permit a decision as to 
access, amendment or correction of records to be made in consultation 
with or by that agency; or (b) verify the identity of an individual or 
the accuracy of information submitted by an individual who has 
requested access to or amendment or correction of records;
    (3) The Office of the President in response to an inquiry from that 
office made at the request of the subject of a record or a third party 
on that person's behalf;
    (4) Congressional offices in response to an inquiry made at the 
request of the individual to whom the record pertains;
    (5) Contractors, agents, or other authorized individuals performing 
work on a contract, service, cooperative agreement, job, or other 
activity on behalf of the CFPB or Federal Government and who have a 
need to access the information in the performance of their duties or 
activities;
    (6) The U.S. Department of Justice (``DOJ'') for its use in 
providing legal advice to the CFPB or in representing the CFPB in a 
proceeding before a court, adjudicative body, or other administrative 
body, where the use of such information by the DOJ is deemed by the 
CFPB to be relevant and necessary to the advice or proceeding, and in 
the case of a proceeding, such proceeding names as a party in interest:
    (a) The CFPB;
    (b) Any employee of the CFPB in his or her official capacity;
    (c) Any employee of the CFPB in his or her individual capacity 
where DOJ or the CFPB has agreed to represent the employee; or
    (d) The United States, where the CFPB determines that litigation is 
likely to affect the CFPB or any of its components;
    (7) A grand jury pursuant either to a federal or state grand jury 
subpoena, or to a prosecution request that such record be released for 
the purpose of its introduction to a grand jury, where the subpoena or 
request has been specifically approved by a court. In those cases where 
the Federal Government is not a party to the proceeding, records may be 
disclosed if a subpoena has been signed by a judge;
    (8) A court, magistrate, or administrative tribunal in the course 
of an administrative proceeding or judicial proceeding, including 
disclosures to opposing counsel or witnesses (including expert 
witnesses) in the course of discovery or other pre-hearing exchanges of 
information, litigation, or settlement negotiations, where relevant or 
potentially relevant to a proceeding, or in connection with criminal 
law proceedings;
    (9) Appropriate agencies, entities, and persons, including but not 
limited to potential expert witnesses or witnesses in the course of 
investigations, to the extent necessary to secure information relevant 
to the investigation;
    (10) Appropriate federal, state, local, foreign, tribal, or self-
regulatory organizations or agencies responsible for investigating, 
prosecuting, enforcing, implementing, issuing, or carrying out a 
statute, rule, regulation, order, policy, or license if the information 
may be relevant to a potential violation of civil or criminal law, 
rule, regulation, order, policy or license;
    (11) To institutions employing MLOs that are required to be 
federally registered under Section 1507 of the S.A.F.E. Act, 12 U.S.C. 
5106, for use in registering employees as mortgage loan originators or 
renewing employee registrations;
    (12) To the public when the information relates to the employment 
history of, and publicly adjudicated disciplinary and enforcement 
actions against, MLOs that is included in the NMLSR for access by the 
public in accordance with Section 1507 of the S.A.F.E. Act, 12 U.S.C. 
5106; and
    (13) To the Federal Banking Agencies, as defined in section 1503 of 
the S.A.F.E. Act, 12 U.S.C. 5102(2), and the FCA, to carry out their 
oversight responsibilities for MLOs employed by entities subject to 
their respective authorities.

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, 
AND DISPENSING OF RECORDS IN THE SYSTEM:
STORAGE:
    Records maintained in this system are stored electronically and in 
file folders. Paper copies of individual records are made by authorized 
CFPB staff.

RETRIEVABILITY:
    Records are retrievable by a variety of fields including, but not 
limited to: an individual MLO's name or unique identification number; 
by the financial institution's name or unique NMLS identification 
number; or by some combination thereof.

SAFEGUARDS:
    Access to electronic records is restricted to authorized personnel 
who have been issued non-transferrable access codes and passwords. 
Other records are maintained in locked file cabinets or rooms with 
access limited to those personnel whose official duties require access.

RETENTION AND DISPOSAL:
    The CFPB will maintain computer and paper records indefinitely 
until the National Archives and Records Administration approves the 
CFPB's records disposition schedule.

SYSTEM MANAGER(S) AND ADDRESS:
    Consumer Financial Protection Bureau, Assistant Director, 
Supervision, 1700 G Street NW., Washington, DC 20552.
    State Regulatory Registry LLC 1129 20th Street NW., Washington, DC 
20036.

NOTIFICATION PROCEDURE:
    Records created by a MLO or by a MLO's bank or bank subsidiary 
employer, or FCA institution or institution subsidiary employer, in the 
NMLSR may be accessed or amended directly by the MLO about whom the 
record pertains. If assistance is required to access, contest or amend 
such a record, individuals may contact the NMLS Call Center at (240) 
386-4444, or may inquire in writing in accordance with instructions 
appearing in Title 12, Chapter 10 of the CFR, ``Disclosure of Records 
and Information.'' Address such requests to: Chief Privacy Officer, 
Bureau of Consumer Financial Protection, 1700 G Street NW., Washington, 
DC 20552.

RECORD ACCESS PROCEDURES:
    See ``Notification Procedures'' above.

CONTESTING RECORD PROCEDURES:
    See ``Notification Procedures'' above.

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

EXEMPTIONS CLAIMED FOR THE SYSTEM:
    None.

[FR Doc. 2012-14383 Filed 6-12-12; 8:45 am]
BILLING CODE 4810-AM-P