Examination guidelines for non-bank loan originators have been issued to state mortgage regulators.
The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 established minimum standards for the individual states to license and register mortgage originators.
Those standards are outlined in new SAFE Act Examination Guidelines.
The guidelines were issued by the Multi-State Mortgage Committee, a 10-state body created by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators.
State regulators can choose to use the guidelines in their entirety or just a portion depending on the size and complexity of the examined entity.
“The SAFE Act Examination Guidelines are not required guidelines, but utilization of SAFE Act Examination Guidelines should allow state agencies to effectively determine compliance with the SAFE Act and provides consistent and uniform guidelines for use by institution in-house compliance and audit departments conducting SAFE Act and state compliance reviews,” the statement said.
The guidelines are designed to make sure that loan originators meet licensing and registration requirements outlined in the SAFE act, according to Conference of State Bank Supervisors Chairman John P. Ducrest.
“These guidelines provide a standardized set of examination procedures that will result in a thorough review of an entity’s compliance with state licensing through NMLS and individual mortgage loan originator compliance with state law and the SAFE Act,” stated Ducrest, who is also commissioner of the Louisiana Office of Financial Institutions.
