SAFE Act – if you are not working for a
“depository institution” there is no doubt you and your
loan originators are likely struggling through compliance
with the SAFE Act as the individual states implement the specific
requirements over the course of the coming year. In addition,
HUD has published the proposed rule for minimum standards as
mandated by the SAFE Act in order to facilitate the
responsibilities placed on HUD under the Act. The proposed rule
comment period will end on February 16, 2010. I find it
interesting to note that unlike state licensing regulations that
have been amended in conjunction with the SAFE Act
requirements and associated unofficial comments by states, the HUD
proposal does not provide for the licensing of persons
typically involved in modification and loss mitigation efforts. My
feeling is that we will see much more official clarification this
year by state regulatory agencies regarding the new licensing
requirements. Remember as you work through the process of
licensing your loan originators that these provisions are new
for state regulatory agencies and you would be best served to
provide yourself enough lead time to facilitate necessary
licenses well in advance of mandated licensing
dates
