Scottsdale, Ariz. – The Multi-State Mortgage Committee (MMC), a ten-state representative body created by the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR), has issued SAFE Act Examination Guidelines (SEGs) for use by state non-depository mortgage regulators.
The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) established minimum standards for individual states to license and register mortgage loan originators (MLOs). While the SAFE Act is primarily limited in coverage to individuals, state law further encompasses the licensing of mortgage institutions through the Nationwide Mortgage Licensing System and Registry (NMLS).
“The primary purpose of the SEGs is to ensure that all individuals acting as MLOs are properly licensed and registered under the SAFE Act in all states in which they are conducting business,” said John P. Ducrest, Commissioner of the Louisiana Office of Financial Institutions and Chairman of CSBS. “These guidelines provide a standardized set of examination procedures that will result in a thorough review of an entity’s compliance with state licensing through NMLS and individual MLO compliance with state law and the SAFE Act.”
State mortgage regulators may wish to use all or portions of the SEGs, depending upon the size and complexity of the institution examined. The SEGs are not required guidelines, but utilization of SEGs should allow state agencies to effectively determine compliance with the SAFE Act and provides consistent and uniform guidelines for use by institution in-house compliance and audit departments conducting SAFE Act and state compliance reviews.
“By making the SEGs public and available to those entities we supervise, state mortgage regulators are increasing the transparency of mortgage supervision and letting the industry know what we expect of them,” said Darin Domingue, Deputy Chief Examiner of the Louisiana Office of Financial Institutions and President of AARMR.
The SEGs may be downloaded here.