The nation’s leading mortgage industry trade association has announced its backing of a new bipartisan bill that would amend the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act).
The Mortgage Bankers Association (MBA)
applauded the introduction of the SAFE Transitional License Act in the U.S. Senate by Sens. Dean Heller (R-NV) and Bob Menendez (D-NJ). Similar legislation was introduced in the House of Representatives in June by Reps. Steve Stivers (R-OH), Bruce Poliquin (R-ME), Joyce Beatty (D-OH) and Kyrsten Sinema (D-AZ).
According to the MBA, both bills would amend the SAFE Act to provide a 120-day temporary authority to originate mortgage loans to MLOs transitioning between federally insured depositories and non-depositories, as well as across state lines. Under the legislation, states would be required to issue this transitional authority to “experienced loan originators currently employed by a financial institution,” the MBA added, noting that all transitioning individual MLOs and the non-bank institutions sponsoring them would still be subject to all required elements of the SAFE Act and applicable state laws.
“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,” said MBA President and CEO David H. Stevens. “MBA looks forward to working with these lawmakers, as well as the leadership of the House Financial Services and Senate Banking Committees, to help advance this legislation to the president’s desk.”