The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (S.A.F.E. Act) established a registration system for individuals who originate mortgage loans. This includes all individuals who are employed by mortgage loan originators. The registration requirements apply to lenders making all sorts of mortgage loans, including first mortgages, second mortgages, home equity lines of credit, refinancing loans, reverse mortgages, and purchases of land for residential construction.
The registration requirements do not apply to everyone who works at a mortgage loan originator. For example, people who simply receive phone calls or perform administrative tasks do not need to register. However, individuals who negotiate loan terms, counsel others about available options, and explain required disclosures need to register. An individual who has worked on five or fewer mortgages during the past 12 months is not required to register.
In California, S.A.F.E. Act licensing and registration requirements apply to all mortgage loan originators. This includes employees of licensees operating under the California Finance Lenders Law and the California Residential Mortgage Lending Act. Those operating under the California Real Estate Law must obtain an endorsement from the Commissioner of the Department of Real Estate in order to engage in mortgage loan origination. Pre-license education and continuing education requirements have been put in place, and Nationwide Mortgage Licensing System identifiers must be disclosed on all advertisements and mortgage loan application forms.
S.A.F.E. Act procedures are new, and compliance can be difficult. Unlicensed mortgage loan origination carries significant civil penalties, and even late registration carries penalties. The Law Offices of Vincent J. LaBarbera has significant experience helping individuals comply with professional licensing requirements, and defending individuals accused of violating professional licensing standards. As Orange County S.A.F.E. Act compliance attorneys, we can assist you to ensure that all licensing and registration requirements are met. Call us today at (949) 863-1663 for a confidential consultation.