[Federal Register Volume 83, Number 186 (Tuesday, September 25, 2018)]
[Proposed Rules]
[Pages 48402-48403]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-20832]


 ========================================================================
 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
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  Federal Register / Vol. 83, No. 186 / Tuesday, September 25, 2018 / 
Proposed Rules  

[[Page 48402]]



FEDERAL RESERVE SYSTEM

12 CFR Parts 208 and 211

[Docket No. R-1622 and RIN 7100 AF-16]


Registration of Mortgage Loan Originators

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Notice of proposed rulemaking; request for public comment.

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SUMMARY: The Board of Governors of the Federal Reserve System (Board) 
is proposing to repeal its regulations that incorporated the Secure and 
Fair Enforcement for Mortgage Licensing Act (the S.A.F.E. Act). Title X 
of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-
Frank Act) transferred rulemaking authority for a number of consumer 
financial protection laws, including the S.A.F.E. Act, from the Board 
to the Bureau of Consumer Financial Protection (Bureau). In December 
2011, the Bureau published an interim final rule, incorporating the 
S.A.F.E. Act into its Regulations G and H. In April 2016, the Bureau 
finalized the interim final rule. Accordingly, the Board is proposing 
to repeal its S.A.F.E. Act regulations.

DATES: Comments must be received on or before November 26, 2018.

ADDRESSES: You may submit comments, identified by Docket No. 1622 and 
RIN 7100 AF-16, by any of the following methods:
     Agency Website: http://www.federalreserve.gov. Follow the 
instructions for submitting comments at http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
     Email: [email protected]. Include the 
docket number in the subject line of the message.
     FAX: (202) 452-3819 or (202) 452-3102.
     Mail: Ann E. Misback, Secretary, Board of Governors of the 
Federal Reserve System, 20th Street and Constitution Avenue NW, 
Washington, DC 20551.

All public comments will be made available on the Board's website at 
http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as 
submitted, unless modified for technical reasons or to remove 
personally identifiable information at the commenter's request. 
Accordingly, comments will not be edited to remove any identifying or 
contact information. Public comments may also be viewed electronically 
or in paper in Room 3515, 1801 K Street NW (between 18th and 19th 
Streets NW), between 9:00 a.m. and 5:00 p.m. on weekdays.

FOR FURTHER INFORMATION CONTACT: Clinton Chen, Senior Attorney, (202) 
452-3952, Justyna Bolter, Attorney, (202) 452-2686, Legal Division, 
Board of Governors of the Federal Reserve System, 20th and C Streets 
NW, Washington, DC 20551. For users of Telecommunications Device for 
the Deaf (TDD) only, contact (202) 263-4869.

SUPPLEMENTARY INFORMATION: 

I. Background and Discussion

    The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 
(S.A.F.E. Act) \1\ mandates a nationwide licensing and registration 
system for residential mortgage loan originators. The S.A.F.E. Act 
requires residential mortgage loan originators employed by depository 
institutions, subsidiaries that are owned and controlled by a 
depository institution and regulated by a federal banking agency, and 
institutions regulated by the Farm Credit Administration (FCA) to 
register with the Nationwide Mortgage Licensing System and Registry, 
obtain a unique identifier, and maintain such registration. Originally, 
the federal registration requirements of the S.A.F.E. Act were 
implemented through a coordinated rulemaking of the federal banking 
agencies and the FCA, the agencies with authority over the federal 
registration requirements under the S.A.F.E. Act (the ``federal 
registry agencies'').\2\ The Board incorporated the S.A.F.E. Act in its 
Regulation H, 12 CFR part 208, subpart I, and Regulation K, 12 CFR 
211.24(k).
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    \1\ 12 U.S.C. 5101 et seq.
    \2\ 75 FR 44656 (July 28, 2010). The rules were promulgated by 
the Board; the Office of the Comptroller of the Currency (OCC); the 
Federal Deposit Insurance Corporation (FDIC); the Office of Thrift 
Supervision, Treasury (OTS); the FCA; and the National Credit Union 
Administration (NCUA).
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    Title X of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act (Dodd-Frank Act) \3\ amended a number of consumer 
financial protection laws, including the S.A.F.E. Act. The Dodd-Frank 
Act transferred rulemaking authority for the S.A.F.E. Act from the 
federal registry agencies to the Bureau of Consumer Financial 
Protection (Bureau), effective July 21, 2011.\4\ In connection with the 
transfer of rulemaking authority for the S.A.F.E. Act to the Bureau, 
the Bureau published an interim final rule to incorporate the S.A.F.E. 
Act into its own Regulations G and H, 12 CFR parts 1007 and 1008 
(Bureau Interim Final Rule).\5\ In April 2016, the Bureau finalized the 
Bureau Interim Final Rule as part of a larger initiative of finalizing 
interim final rules.\6\ The Bureau's regulations that incorporate the 
S.A.F.E. Act substantially duplicate the federal registry agencies' 
coordinated rules and cover the entities that were previously subject 
to the other agencies' rules. Consequently, the Board is publishing 
this proposal to repeal its regulations that originally incorporated 
the S.A.F.E. Act.
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    \3\ Public Law 111-203, 124 Stat. 1376 (2010).
    \4\ See Public Law 111-203, sections 1061 & 1100. The Dodd-Frank 
Act generally excludes from this transfer of authority, subject to 
certain exceptions, any rulemaking authority over a motor vehicle 
dealer that is predominantly engaged in the sale and servicing of 
motor vehicles, the leasing and servicing of motor vehicles, or 
both. Public Law 111-203, section 1029. The rulemaking authority 
retained by the Board under Section 1029 of the Dodd-Frank Act does 
not extend to residential mortgages. Thus, all rulemaking authority 
under the S.A.F.E. Act, which pertains only to mortgage loan 
originator registrations, was transferred to the Bureau.
    \5\ 76 FR 78483 (Dec. 19, 2011).
    \6\ 81 FR 25323 (April 28, 2016).
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II. Initial Regulatory Flexibility Analysis

    The Regulatory Flexibility Act (the ``RFA'') (5 U.S.C. 601 et seq.) 
requires agencies either to provide an initial regulatory flexibility 
analysis with a proposed rule or to certify that the proposed rule will 
not have a significant economic impact on a substantial number of small 
entities. In accordance with section 3(a) of the RFA, the Board has 
reviewed the proposed regulation. This Initial Regulatory Flexibility 
Analysis has been prepared in accordance with 5 U.S.C. 603 in order

[[Page 48403]]

for the Board to solicit comment on the effect of the proposal on small 
entities. The Board will, if necessary, conduct a final regulatory 
flexibility analysis after consideration of comments received during 
the public comment period.
    1. Statement of the need for, and objectives of, the proposed rule. 
Title X of the Dodd-Frank Act transferred rulemaking authority for the 
S.A.F.E. Act and other enumerated consumer financial protection laws 
from the Board to the Bureau, effective July 21, 2011. In December 
2011, the Bureau issued an Interim Final Rule to incorporate the 
S.A.F.E. Act pursuant to the transfer of rulemaking authority. Although 
the Board retains authority to issue some consumer financial protection 
rules, all rulemaking authority under the S.A.F.E. Act concerning 
mortgage loan originator registration was transferred to the Bureau. 
Consequently, the Board is proposing to repeal its regulations that 
incorporated the S.A.F.E. Act.
    2. Small entities affected by the proposed rule. Any entity that is 
currently covered by the S.A.F.E. Act is subject to the rules issued by 
the Bureau, located in 12 CFR part 1007 and 1008. Therefore the Board's 
repeal of its regulations that incorporated the S.A.F.E. Act would not 
affect any entity, including small entities.
    3. Recordkeeping, reporting, and compliance requirements. The 
proposed rule would repeal parts of the Board's regulations that 
incorporated the S.A.F.E. Act, and would therefore not impose any 
recordkeeping, reporting, or compliance requirements on any entities.
    4. Other Federal Rules. The Board has not identified any federal 
rules that duplicate, overlap, or conflict with the proposed repeal of 
the Board's regulations that incorporated the S.A.F.E. Act.
    5. Significant alternatives to the proposed revisions. The Board is 
not aware of any significant alternatives that would further minimize 
the impact on small entities of the proposed repeal, but solicits 
comment on this approach.

III. Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act (PRA) of 1995 (44 
U.S.C. 3506; 5 CFR 1320 Appendix A.1), the Board reviewed the rule 
under the authority delegated to the Federal Reserve by the Office of 
Management and Budget (OMB). The proposed rule contains no collections 
of information under the PRA. See 44 U.S.C. 3502(3). Accordingly, there 
is no paperwork burden associated with the proposed rule.

List of Subjects

12 CFR Part 208

    Accounting, Agriculture, Banks, Banking, Confidential business 
information, Consumer protection, Crime, Currency, Insurance, 
Investments, Mortgages, Reporting and recordkeeping requirements, 
Securities.

12 CFR Part 211

    Exports, Foreign banking, Holding companies, Investments, Reporting 
and recordkeeping requirements.

Authority and Issuance

    For the reasons set forth in the preamble, the Board proposes to 
amend chapter II of title 12 of the Code of Federal Regulations as 
follows:

PART 208--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE FEDERAL 
RESERVE SYSTEM (REGULATION H)

0
1. The authority citation for part 208 continues to read as follows:

    Authority: 12 U.S.C. 24, 36, 92a, 93a, 248(a), 248(c), 321-338a, 
371d, 461, 481-486, 601, 611, 1814, 1816, 1818, 1820(d)(9), 1833(j), 
1828(o), 1831, 1831o, 1831p-1, 1831r-1, 1831w, 1831x, 1835a, 1882, 
2901-2907, 3105, 3310, 3331-3351, 3905-3909, and 5371; 15 U.S.C. 
78b, 78I(b), 78l(i), 780-4(c)(5), 78q, 78q-1, and 78w, 1681s, 1681w, 
6801, and 6805; 31 U.S.C. 5318; 42 U.S.C. 4012a, 4104a, 4104b, 4106 
and 4128.

Subpart I--[Removed and Reserved]

0
2. Remove and reserve subpart I, consisting of Sec. Sec.  208.101 
through 208.105 and Appendix A.

PART 211--INTERNATIONAL BANKING OPERATIONS (REGULATION K)

0
3. The authority citation for part 211 continues to read as follows:

    Authority: 12 U.S.C. 221 et seq., 1818, 1835a, 1841 et seq., 
3101 et seq., 3901 et seq., and 5101 et seq.; 15 U.S.C. 1681s, 
1681w, 6801 and 6805.

0
4. In Sec.  211.24, remove paragraph (k).

    By order of the Board of Governors of the Federal Reserve 
System, September 20, 2018.
Ann Misback,
Secretary of the Board.
[FR Doc. 2018-20832 Filed 9-24-18; 8:45 am]
 BILLING CODE 6210-01-P