The Consumer Financial Protection Bureau (CFPB) has issued an interpretive rule
designed to clarify the screening and training requirements for temporary loan originators at financial institutions.
, which takes effect on Nov. 24, is based on the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) requirements for licensing and registering loan originators. According to the CFPB, loan originators with temporary authority are defined as either loan originators who were previously registered or licensed, are employed by a state-licensed mortgage company, are applying for a new state loan originator license, and meet other criteria specified in the statute.
Under the new rule
, loan originators with temporary authority may act as a loan originator for a temporary period of time, as specified in the statute, in a state while that state considers their application for a loan originator license.