Legislation introduced in the Senate takes bank mortgage originators one step closer to being able to easily transition from a financial institution to a non-bank home lender.
The bill,
S. 1753, SAFE Transitional Licensing Act, was introduced on Aug. 3 by Sen. Dean Heller (R-Nevada) and Sen. Bob Menendez (D-New Jersey).
The proposed law is similar to H.R.
2121, which was introduced in the House back in April 2015 by a bipartisan group of lawmakers.
According to the Senate, the bill would amend the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 by providing temporary licenses for mortgage loan originators who are transitioning between employers, among other things.
A statement from Mortgage Bankers Association President and Chief Executive Officer David H. Stevens indicated that the industry is grateful for the legislation.
MBA explained that both bills would give originators transitioning from federally insured depositories and non-bank mortgage firms or between states 120 days to originate loans while maintaining important consumer protections established under the SAFE act.
In addition, the trade group noted that the legislation would require states to issue this transitional authority to experienced originators who are currently employed by a financial institution.
But
the bill also stipulates that all transitioning individual originators — and the non-bank lenders sponsoring them — remain subject to all required elements of the SAFE act.
“This legislation will maintain the important consumer protections established under the federal SAFE Act, while offering enhanced workforce mobility for mortgage loan officers who choose to change employers or move across state lines to pursue new career opportunities,” Stevens said.
