SAFE Act and CSBS/AARMR Model State Law (grupo 4) Questions and Answers

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SAFE Act and CSBS/AARMR Model State Law (grupo 4) Questions and Answers Who provided states with direction in creating and implementing the state licensure requirements? >>>>The CSBS/AARMR Model S... tate Law. CSBS-Conference of State Bank Supervisors. AARMR-American Association of Residential Mortgage Regulators The CSBS/AARMR Model State Law >>>>meets the minimum requirements of the SAFE Act and helped create a uniformity and consistency of the standards among all of the states. 1- State Mortgage Regulatory Agencies >>>>The Federal Reserve Board: administers the Truth-in-Lending, Equal Credit Opportunity, and Fair Credit Reporting Acts. FALTAN MAS Regulations that Implement the SAFE Act >>>>• Regulation G controls the requirements for registered loan originators. • Regulation H controls the requirements for state-licensed loan originators. Administrative or clerical tasks (SAFE Act) >>>>Any or all tasks performed in relation to the receipt, collection, and distribution of any information needed for the processing or underwriting of a loan. Application (SAFE Act) >>>>Application means a request, in any form, for an offer of residential mortgage loan terms, and the information about the borrower or prospective borrower that is customary or necessary in a decision on whether to make such an offer. Residencial Mortgage Loan originator (SAFE Act) >>>>an individual who takes a residencial mortgage loan application and offers or negotiates terms of a residencial mortgage loan for compensation or gain. Loan processor or underwriter (SAFE Act) >>>>means an individual who performs clerical or support duties at the direction of and subject to the supervision and instruction of a state-licensed (or registered) loan originator. Nationwide Mortgage Licensing System and Registry >>>>NMLS Nontraditional mortgage product >>>>Any mortgage product other than a 30 year fixed rate mortgage Registered Mortgage Loan Originator >>>>(RMLO)The term registered loan originator means "any individual who-- (A) meets the definition of loan originator and is an employee of-- (i) a depository institution; (ii) a subsidiary that is-- (I) owned and controlled by a depository institution; and (II) regulated by a Federal banking agency; or (iii) an institution regulated by the Farm Credit Administration; and (B) is registered with, and maintains a unique identifier through, the Nationwide Mortgage Licensing System and Registry." Residential Mortgage Loan >>>>any loan used primarily for personal, family or household use that is secured by a mortgage, deed of trust or other consensual (aceptado por acuerdo) interest in a dwelling. dwelling >>>>a place where people live. -residencial structure of 1-4 units, individual condominium unit, cooperative unit, mobile or manufacture home, or trailer. SAFE Act. "or" Title V of HERA >>>>Secure and Fair Enforcement for Mortgage Licensing Act. Designed to enhance consumer protection and reduce fraud. Implemented by Regulation G and Regulation H State-Licensed Loan Originator >>>>(MLO) means any individual who is a mortgage loan originator who is licensed by a State and is registered as a mortgage loan originator with, and maintains a unique identifier through, the NMLS. This person is NOT employed by a federal agency-regulated institution. unique identifier >>>>The number permanently assigned by the Nationwide Mortgage Licensing System & Registry (NMLS) for each company, branch, and individual when the entity first creates its record in NMLS. Permanently identifies a registered MLO Shall be clearly shown on all residencial mortgage loan application forms, solicitations or advertisements including business cards or websites. SAFE Act >>>>S.A.F.E. Act This Act may be cited as the "[State] Secure and Fair Enforcement for Mortgage Licensing Act of 2009 or [State] S.A.F.E. Mortgage Licensing Act of 2009". The purpose of this Act is to protect consumers seeking mortgage loans and to ensure that the mortgage lending industry is operating without unfair, deceptive, and fraudulent practices on the part of mortgage loan originators. Therefore the Legislature establishes within this Act: (1) SYSTEM OF SUPERVISION AND ENFORCEMENT—An effective system of supervision and enforcement of the mortgage lending industry, including:(a) The authority to issue licenses to conduct business under this Act, including the authority to write rules or regulations or adopt procedures necessary to the licensing of persons covered under this Act. (b) The authority to deny, suspend, condition or revoke licenses issued under this Act. (c) The authority to examine, investigate and conduct enforcement actions as necessary to carry out the intended purposes of this Act, including the authority to subpoena witnesses and documents, enter orders, including cease and desist orders, order restitution and monetary penalties and order the removal and ban of individuals from office or employment. (2) BROAD ADMINISTRATIVE AUTHORITY—That the Commissioner shall have the broad administrative authority to administer, interpret and enforce this Act, and promulgate rules or regulations implementing this Act, in order to carry out the intentions of the Legislature. [Show More]

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