WASHINGTON — The Federal Reserve is proposing to repeal mortgage loan originator licensing and registration requirements, as the Dodd-Frank Act transferred rulemaking authority to the Consumer Financial Protection Bureau.
The Fed said the proposal is intended to eliminate duplication of rules for entities covered by the Secure and Fair Enforcement for Mortgage Licensing Act of 2008.
“The Bureau’s regulations that incorporate the S.A.F.E. Act substantially duplicate the federal registry agencies’ coordinated rules and cover the entities that were previously subject to the other agencies’ rules,” the Fed said in its proposal. “Consequently, the Board is publishing this proposal to repeal its regulations that originally incorporated the S.A.F.E. Act.”
The 2008 law mandated a nationwide licensing and registration system for residential mortgage loan originators. Mortgage loan originators were required to register with the Nationwide Mortgage Licensing System and Registry, obtain a unique identifier and maintain registration.
The Fed said its repeal of the regulations would not affect any entity, including small entities, since the CFPB finalized the interim final rule to incorporate the S.A.F.E. Act into its regulations in April 2016.
Comments on the Fed’s proposal will be accepted 60 days after it is published in the Federal Register.
