Financial institutions that originate mortgages must submit background information and fingerprints for the licensing of loan originators, under proposed rules issued by NCUA and five other regulatory agencies. T
The regulators are also seeking input on issues such as whether the rules should apply to those who modify existing mortgages and whether there should be an "asset threshold" for institutions that have to comply.
These regulations would meet the registration requirements of the S.A.F.E. Mortgage Licensing Act of 2008, which requires the regulators to develop and maintain a system for registering residential mortgage loan originators who are employees of credit unions, national and state banks, savings associations, and Farm Credit System institutions, and some of their subsidiaries. These mortgage loan originators must be registered with the Nationwide Mortgage Licensing System and Registry, a database established by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators to support the licensing of mortgage loan originators by state governments.
There is a 30-day comment period, and the rules will take effect 180 days after they receive final approval from all the agencies.
A copy of the proposal can be found at: http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20090601a1.pdf.
In addition to the NCUA, the agencies issuing the regulations included the Federal Reserve System, the Federal Deposit Insurance Corporation, Office of Thrift Supervision, Farm Credit Administration and Office of the Comptroller of the Currency.
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