ALEXANDRIA, Va. (11/18/09)— The Federal Deposit Insurance Corp. (FDIC) announced the approval of a draft final rule to implement the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act). The National Credit Union Administration (NCUA) and the other federal bank and thrift regulators are still working through some issues and will follow suit at a later date. Under the SAFE Act, employees of financial institutions, or their subsidiaries that act as residential loan originators, are required to register with the Nationwide Mortgage Licensing System and Registry. The FDIC plan states:
* For purposes of the registry, each mortgage originator must obtain a unique identifier, and maintain the registration; * Financial institutions must require employees acting as residential mortgage loan originators to comply with the S.A.F.E. Act’s requirements to register and obtain a unique identifier; * Financial institutions must adopt and follow written policies and procedures designed to assure compliance with these requirements.
In a July comment letter to the NCUA on its proposed S.A.F.E. Act rule, the Credit Union National Association (CUNA) requested that privately insured credit unions have access to the mortgage registry even though they are not covered under the rules. In addition, CUNA suggested changes to the threshold for determining which financial institutions would be covered by the rules and requested that there be an exception for loan modifications.