MBA Call to Action Urges Momentum on Transitional Authority Bill

The Mortgage Bankers Association’s grassroots advocacy arm yesterday called on the House to move forward on a bill that 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.  

The MBA Mortgage Action Alliance issued a Call to Action, urging its members to contact their House members regarding H.R. 2121, the SAFE Transitional Licensing Act of 2015 (https://www.congress.gov/bill/114th-congress/house-bill/2121). The House Financial Services Committee marked up the bill on Mar. 2; the bill now awaits scheduling on the House floor for a full vote.  

H.R. 2121 provides 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).   

“H.R. 2121 is an MBA priority and an important bill for the mortgage industry,” MBA said. “Transitional authority would be available to [mortgage loan originators] that 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).”  

MBA noted 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.  

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