| Title: | MBA and Others Express Grave Concerns About Regulations Proposed Under SAFE Act |
| Source: | MBA |
| Date: | 3/8/2010 |
On Friday, March 5, 2010, the Mortgage Bankers Association (MBA), American Bankers Association (ABA), American Financial Services
Association (AFSA) and 11 state and local mortgage lending groups filed a comprehensive comment letter to the U.S. Department
of Housing and Urban Development (HUD) expressing serious concerns about several proposed regulations under the Secure and
Fair Enforcement for Mortgage Licensing Act (SAFE Act).
The letter expresses concern that HUD is proposing to exceed its statutory authority under the SAFE Act establishing a backup
system and determining whether state laws meet the SAFE Act's minimum requirements. In this regard, HUD indicates it may
require states to treat servicer employees engaged in loan modifications as originators for the purposes of the Act. If the
regulation is finalized as proposed, HUD risks significantly curtailing the ability of servicers to complete loan modifications
until their employees are registered or licensed.
The letter's central theme is that HUD can and should do considerably more to achieve SAFE's central objective of establishing
uniform standards for loan originators of state-regulated lenders throughout the nation. As an example, the letter suggests
that HUD should clearly indicate that the SAFE law does not preclude and should, in fact, encourage the recognition of out-of-state
licenses and provisional licensing of federally registered and other originators pending licensure.
Joining MBA, ABA and AFSA in signing the letter are state and local mortgage lending organizations representing California,
Colorado, Indiana, Michigan, Missouri, the Carolinas, Florida, Greater Washington (DC), Ohio, Texas and Virginia.
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The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry
that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the
association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand
homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and
fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety
of publications. Its membership of over 2,200 companies includes all elements of real estate finance: mortgage companies,
mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending
field. For additional information, visit MBA's Web site: www.mortgagebankers.org.