§5101 — Title 12 Banks and Banking | U.S. Code

Summary

Encourages states to set up a Nationwide Mortgage Licensing System and Registry to make mortgage licensing more consistent and safer. The system must use the same license forms and reports for state-licensed loan originators (people who arrange mortgage loans). It must keep a full licensing and supervision database, help regulators share information, track and hold originators accountable, and make licensing simpler. It must strengthen consumer protections and fight fraud, give free online access to originators’ work history and public disciplinary actions, push originators to act in consumers’ best interests, require subprime training and testing, and collect consumer complaints for regulators.

Title 12, §5101

Banks and Banking — Source: USLM XML via OLRC

In order to increase uniformity, reduce regulatory burden, enhance consumer protection, and reduce fraud, the States, through the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators, are hereby encouraged to establish a Nationwide Mortgage Licensing System and Registry for the residential mortgage industry that accomplishes all of the following objectives:

(1)Provides uniform license applications and reporting requirements for State-licensed loan originators.

(2)Provides a comprehensive licensing and supervisory database.

(3)Aggregates and improves the flow of information to and between regulators.

(4)Provides increased accountability and tracking of loan originators.

(5)Streamlines the licensing process and reduces the regulatory burden.

(6)Enhances consumer protections and supports anti-fraud measures.

(7)Provides consumers with easily accessible information, offered at no charge, utilizing electronic media, including the Internet, regarding the employment history of, and publicly adjudicated disciplinary and enforcement actions against, loan originators.

(8)Establishes a means by which residential mortgage loan originators would, to the greatest extent possible, be required to act in the best interests of the consumer.

(9)Facilitates responsible behavior in the subprime mortgage market place and provides comprehensive training and examination requirements related to subprime mortgage lending.

(10)Facilitates the collection and disbursement of consumer complaints on behalf of State and Federal mortgage regulators.

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Short Title

of 2015 Amendment Pub. L. 114–94, div. G, title LXXXVIII, § 88001, Dec. 4, 2015, 129 Stat. 1799, provided that: “This title [amending section 5110 of this title] may be cited as the ‘State Licensing Efficiency Act of 2015’.”

Short Title

Pub. L. 110–289, div. A, title V, § 1501, July 30, 2008, 122 Stat. 2810, provided that: “This title [enacting this chapter] may be cited as the ‘Secure and Fair

Enforcement

for Mortgage Licensing Act of 2008’ or ‘S.A.F.E. Mortgage Licensing Act of 2008’.”

§5101 Purposes and Methods for Establishing a Mortgage Licensing System and Registry

Summary

Title 12, §5101

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

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Enforcement

Citations & Metadata