Sec. 2. Eliminating barriers to jobs for loan originators
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/bill/115/s/1753/is/section-2A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The S.A.F.E. Mortgage Licensing Act of 2008 ( 12 U.S.C. 5101 et seq.) is amended by adding at the end the following: Upon employment by a State-licensed mortgage company, an individual who is a registered loan originator shall be deemed to have temporary authority to act as a loan originator in an application State for the period described in paragraph
(2)if the individual— has not had an application for a loan originator license denied, or had such a license revoked or suspended in any governmental jurisdiction; has not been subject to or served with a cease and desist order in any governmental jurisdiction or as described in section 1514(c); has not been convicted of a felony that would preclude licensure under the law of the application State; has submitted an application to be a State-licensed loan originator in the application State; and was registered in the Nationwide Mortgage Licensing System and Registry as a loan originator during the 12-month period preceding the date of submission of the information required under section 1505(a). The period described in this paragraph shall begin on the date on which the individual submits the information required under section 1505(a) and shall end on the earliest of— the date on which the individual withdraws the application to be a State-licensed loan originator in the application State; the date on which the application State denies, or issues a notice of intent to deny, the application; the date on which the application State grants a State license; or the date that is 120 days after the date on which the individual submits the application, if the application is listed on the Nationwide Mortgage Licensing System and Registry as incomplete. A State-licensed loan originator shall be deemed to have temporary authority to act as a loan originator in an application State for the period described in paragraph
(2)if the State-licensed loan originator— meets the requirements of subparagraphs (A), (B), (C), and
(D)of subsection (a)(1); is employed by a State-licensed mortgage company in the application State; and was licensed in a State that is not the application State during the 30-day period preceding the date of submission of the information required under section 1505(a) in connection with the application submitted to the application State. The period described in this paragraph shall begin on the date on which the State-licensed loan originator submits the information required under section 1505(a) in connection with the application submitted to the application State and end on the earliest of— the date on which the State-licensed loan originator withdraws the application to be a State-licensed loan originator in the application State; the date on which the application State denies, or issues a notice of intent to deny, the application; the date on which the application State grants a State license; or the date that is 120 days after the date on which the State-licensed loan originator submits the application, if the application is listed on the Nationwide Mortgage Licensing System and Registry as incomplete. Any person employing an individual who is deemed to have temporary authority to act as a loan originator in an application State pursuant to this section shall be subject to the requirements of this title and to applicable State law to the same extent as if such individual was a State-licensed loan originator licensed by the application State. Any individual who is deemed to have temporary authority to act as a loan originator in an application State pursuant to this section and who engages in residential mortgage loan origination activities shall be subject to the requirements of this title and to applicable State law to the same extent as if such individual was a State-licensed loan originator licensed by the application State. In this section, the following definitions shall apply: The term application State means a State in which a registered loan originator or a State-licensed loan originator seeks to be licensed. The term State-licensed mortgage company means an entity licensed or registered under the law of any State to engage in residential mortgage loan origination and processing activities. . The table of contents in section 1(b) of the Housing and Economic Recovery Act of 2008 ( 42 U.S.C. 4501 note) is amended by inserting after the item relating to section 1517 the following: Sec. 1518. Employment transition of loan originators. . This section and the amendments made by this section shall take effect on the date that is 18 months after the date of enactment of this Act.
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