S.A.F.E. Mortgage Licensing Act of 2008 Amendment

Floor Speech

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Mrs. BEATTY. Mr. Speaker, I rise today to express support for the SAFE Transitional Licensing Act, H.R. 2121 introduced by my good friend from Ohio, Mr. Stivers. This bipartisan bill provides much needed, common-sense regulatory relief for mortgage loan originators that levels the playing field, creates job mobility and allows independent mortgage lenders to recruit a talented workforce.

The SAFE Transitional Licensing Act requires states to provide a temporary, transitional license for registered loan originators that move from a financial institution to a state-licensed non-bank originator or move interstate to a state-licensed loan originator. These individuals will be allowed to continue to work and originate loans in their new capacity for up to 120 days, while seeking the appropriate state licenses. This bill addresses the unintended consequences of some of the provisions in the Secure and Fair Enforcement for Mortgage Licensing Act of 2008, which created difficulties when a mortgage loan officer decided to switch jobs from a bank to a non-bank lender, or when a mortgage loan officer decided to move across state lines.

Under current law, mortgage loan originators are required to wait until they receive their new licenses before they can originate loans. Often times, mortgage loan originators are forced to wait weeks, even months, before their new licenses are approved. This unfairly inhibits job mobility for mortgage loan originators and puts independent mortgage lenders at a disadvantage in recruiting talented staff. The SAFE Transitional Licensing Act amends the SAFE Mortgage Licensing Act to give relief to loan officers, while also allowing state regulators the authority to continue to keep bad actors out of the industry and enforce applicable state laws.

The State of Ohio was the first state to enact a transitional license for out-of-state licensed mortgage loan originators. Now, it is time for Congress to follow Ohio's lead and provide regulatory relief that levels the playing field, creates job mobility and allows independent mortgage lenders to recruit a talented workforce. I urge my colleagues to vote ``Yes'' for this common-sense piece of legislation.

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