House Passes Mortgage Loan Originator Bill

The House yesterday passed a Mortgage Bankers Association-supported bill that would enable mortgage loan originators to move from one institution to another while working to meet SAFE Act licensing and testing requirements.   

H.R. 2121, the SAFE Transitional Licensing Act (, 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).   

MBA President and CEO David Stevens, CMB, called H.R. 2121 one of MBA’s top legislative priorities and praised the House for the bill’s unanimous passage.  

“This is an important piece of bipartisan legislation which will help all lenders recruit experienced mortgage loan officers without unnecessary barriers to employment mobility and job opportunity,” Stevens said. “It provides mortgage loan officers nationwide the ability to relocate to new states or change employers for better earnings potential or career opportunities. MBA has continuously called for consistent national standards for all lenders regardless of business model and this legislation will help promote that goal. We are grateful the bill also addresses the important consumer protection concerns of state regulators.”  

The Mortgage Action Alliance, MBA’s grassroots advocacy arm, reported more than 4,300 MBA members used its Advocacy Action Center to contact 374 members of Congress in support of H.R. 2121.     

In an Issue Brief (, MBA said states should provide for speedy licensure of qualified MLOs moving from a bank or bank affiliate lender to a non-bank lender and those licensed MLOs seeking licensure in another state. “Together these steps will improve MLO productivity, encourage MLO compliance, prevent adverse selection of MLOs at banks and ensure non-bank lenders can fairly compete for talented MLOs,” MBA said.  

Our focus now turns to the Senate, where similar language is contained in S. 1484, sponsored by Senate Banking Committee Chairman Richard Shelby, R-Ala. (  

“MBA now urges the Senate to consider this bill expeditiously,” Stevens said. “We look forward to continuing to work with policymakers and other key stakeholders to ensure a robust, sustainable and competitive residential mortgage marketplace.”  

MBA Senior Vice President of Legislative and Political Affairs Bill Killmer said MAA will organize additional Calls to Action to ensure Senate passage. “We are currently evaluating strategies for getting this legislation passed and to the President’s desk,” he said.