MBA Call to Action Urges Hill Support for MLO Transitional Licensing Authority

The Mortgage Bankers Association’s grassroots advocacy arm, the Mortgage Action Alliance, issued a Call to Action yesterday, urging its members to ask their members of Congress to support a bill giving transitional licensing authority to mortgage loan originators.  

H.R. 2121, the SAFE Transitional Licensing Act )https://www.congress.gov/bill/114th-congress/house-bill/2121), would provide transitional authority to originate mortgages for individuals who move from a federally insured institution to a non-bank lender while they work to meet the SAFE Act’s licensing and testing requirements. Transitional authority would be available to mortgage loan originators who have a clean history as an originator (e.g., no license denials, revocations or suspensions, no cease and desist orders and no felonies that preclude licensing).  

The House Financial Services Committee approved H.R. 2121 in March.  

The language of the bill has been endorsed by MBA after consultation with the Conference of State Bank Supervisors and would be a narrow and simple solution to allow individuals to continue working and underwriting loans, while in no way weakening the important consumer protections of the SAFE Act.  

“H.R. 2121 is an important bill for the mortgage industry,” MBA said. “Transitional authority would be available to MLOs who have been registered for at least 12 months and have a clean history as an originator (e.g., no license denials, revocations or suspensions, no cease and desist orders, and no felonies that preclude licensing).”  

To view the Call to Action, click http://action.mba.org/mba/app/onestep-write-a-letter?0&engagementId=177135.  

For more information about the MBA Mortgage Action Alliance, click http://action.mba.org/mba/app/register?1&m=99243.