Loan officers at banks, thrifts, and credit unions must sign up with a nationwide registry starting next year under final rules issued by federal regulators on Wednesday.
The federal agencies expect to have the registry ready to accept LO registrations by the end of January. However, LOs at depositories do not need to start registering until their regulator notifies them. After notification, LOs will have 180 days to complete the process.
Under the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE), loan officers working for federally insured depositories (or their subsidiaries) must furnish registry information and fingerprints for background checks.
State-licensed LOs that work for independent mortgage banking and brokerage firms (nondepositories) must meet educational and testing requirements, and go through criminal background checks under the SAFE Act by the end of this year.
The first wave of loan officers and mortgage brokers has until July 31 to complete the state registry process. A few states — New Jersey, Maryland and South Carolina — have run into processing delays and extended their deadlines, according to the Mortgage Bankers Association.
"It is just amazing" these states didn't provide the extension until only a few days before the deadline, according to Robert Lotstein, managing attorney for MBank Advisors in Washington. "It wasn't until today that South Carolina brokers learned whether or not they could keep lending," Lotstein said.
