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Title 12, Part 1007 - S.A.F.E. Mortgage Licensing Act - Federal Registration of Residential Mortgage Loan Originators
National Regulation
12 CFR 1007

Eff: 12/19/2011
General
12 CFR 1007.101

Eff: 12/19/2011
Section 101 - Authority, purpose, and scope
  1. 12 CFR 1007.101(a)
    Authority. This part, known as Regulation G, is issued by the Bureau of Consumer Financial Protection pursuant to the Secure and Fair Enforcement for Mortgage Licensing Act of 2008, title V of the Housing and Economic Recovery Act of 2008 (S.A.F.E. Act) (Pub. L. 110-289, 122 Stat. 2654, 12 U.S.C. 5101 et seq. ), 12 U.S.C. 5512, 5581, 15 U.S.C. 1604(a), 1639b.
  2. 12 CFR 1007.101(b)
    Purpose. This part implements the S.A.F.E. Act's Federal registration requirement for mortgage loan originators. The S.A.F.E. Act provides that the objectives of this registration include aggregating and improving the flow of information to and between regulators; providing increased accountability and tracking of mortgage loan originators; enhancing consumer protections; supporting anti-fraud measures; and providing consumers with easily accessible information at no charge regarding the employment history of, and publicly adjudicated disciplinary and enforcement actions against, mortgage loan originators.
  3. 12 CFR 1007.101(c)
    Scope
    1. 12 CFR 1007.101(c)(1)
      In general. This part applies to:
      1. 12 CFR 1007.101(c)(1)(i)
        National banks, Federal branches and agencies of foreign banks, their operating subsidiaries (collectively referred to in this part as national banks), and their employees who act as mortgage loan originators;
      2. 12 CFR 1007.101(c)(1)(ii)
        Member banks of the Federal Reserve System; their respective subsidiaries that are not functionally regulated within the meaning of section 5(c)(5) of the Bank Holding Company Act, as amended (12 U.S.C. 1844(c)(5)); branches and agencies of foreign banks; commercial lending companies owned or controlled by foreign banks (collectively referred to in this part as member banks); and their employees who act as mortgage loan originators;
      3. 12 CFR 1007.101(c)(1)(iiii)
        Insured state nonmember banks (including state-licensed insured branches of foreign banks), their subsidiaries (except brokers, dealers, persons providing insurance, investment companies, and investment advisers) (collectively referred to in this part as insured state nonmember banks), and employees of such banks or subsidiaries who act as mortgage loan originators;
      4. 12 CFR 1007.101(c)(1)(iv)
        Savings associations, their operating subsidiaries (collectively referred to in this part as savings associations), and their employees who act as mortgage loan originators;
      5. 12 CFR 1007.101(c)(1)(v)
        Farm Credit System lending institutions that actually originate residential mortgage loans pursuant to sections 1.9(3), 1.11 or 2.4(a) and (b) of the Farm Credit Act of 1971 (collectively referred to in this part as Farm Credit System institutions), and their employees who act as mortgage loan originators; and
      6. 12 CFR 1007.101(c)(1)(vi)
        Any federally insured credit union and its employees, including volunteers, who act as mortgage loan originators. This part also applies to non-federally insured credit unions and their employees, including volunteers, who act as mortgage loan originators, subject to the conditions in paragraph (c)(3) of this section.
    2. 12 CFR 1007.101(c)(2)
      De minimis exception.
      1. 12 CFR 1007.101(c)(2)(i)
        This part and the requirements of 12 U.S.C. 5103(a)(1)(A) and (2) of the S.A.F.E. Act do not apply to any employee of a national bank, member bank, insured state nonmember bank, savings association, Farm Credit System institution, or credit union who has never been registered or licensed through the Registry as a mortgage loan originator if during the past 12 months the employee acted as a mortgage loan originator for 5 or fewer residential mortgage loans.
      2. 12 CFR 1007.101(c)(2)(ii)
        Prior to engaging in mortgage loan origination activity that exceeds the exception limit in paragraph (c)(2)(i) of this section, an employee must register with the Registry pursuant to this part.
      3. 12 CFR 1007.101(c)(2)(iii)
        Evasion. National banks, member banks, insured state nonmember banks, savings associations, Farm Credit System institutions, and credit unions are prohibited from engaging in any act or practice to evade the limits of the de minimis exception set forth in paragraph (c)(2)(i) of this section.
    3. 12 CFR 1007.101(c)(3)
      For non-federally insured credit unions. A non-federally insured credit union in a state identified on the National Credit Union Administration's Web site (NCUA.gov) as one where the appropriate state supervisory authority has executed a Memorandum of Understanding (MOU) with the National Credit Union Administration may register under this rule provided that any Nationwide Mortgage Licensing System and Registry listing of the non-federally insured credit union and its employees contains a clear and conspicuous statement that the non-federally insured credit union is not insured by the National Credit Union Share Insurance Fund, and the state supervisory authority where the non-federally insured credit union is located maintains an agreement with the National Credit Union Administration for this registration process and oversight. If the state supervisory authority where the non-federally insured credit union is located fails to maintain such an agreement, the non-federally insured credit union and its employees in that state may not register or maintain registration under the Federal system. They instead must use the appropriate state licensing and registration system, or if the state does not have such a system, the licensing and registration system established by the Bureau for mortgage loan originators and their employees.
12 CFR 1007.102

Eff: 12/19/2011
Section 102 - Definitions
12 CFR 1007.103

Eff: 12/19/2011
Section 103 - Registration of mortgage loan originators
  1. 12 CFR 1007.103(a)
    Registration requirement
    1. 12 CFR 1007.103(a)(1)
      Employee registration. Each employee of a covered financial institution who acts as a mortgage loan originator must register with the Registry, obtain a unique identifier, and maintain this registration in accordance with the requirements of this part. Any such employee who is not in compliance with the registration and unique identifier requirements set forth in this part is in violation of the S.A.F.E. Act and this part.
    2. 12 CFR 1007.103(a)(2)
      Covered financial institution requirement
      1. 12 CFR 1007.103(a)(2)(i)
        In general. A covered financial institution that employs one or more individuals who act as a residential mortgage loan originator must require each such employee to register with the Registry, maintain this registration, and obtain a unique identifier in accordance with the requirements of this part.
      2. 12 CFR 1007.103(a)(2)(ii)
        Prohibition. A covered financial institution must not permit an employee who is subject to the registration requirements of this part to act as a mortgage loan originator for the covered financial institution unless such employee is registered with the Registry pursuant to this part.
    3. 12 CFR 1007.103(a)(3)
      [Reserved]
    4. 12 CFR 1007.103(a)(4)
      Employees previously registered or licensed through the Registry
      1. 12 CFR 1007.103(a)(4)(i)
        In general. If an employee of a covered financial institution was registered or licensed through, and obtained a unique identifier from, the Registry and has maintained this registration or license before the employee becomes subject to this part at the current covered financial institution, then the registration requirements of the S.A.F.E. Act and this part are deemed to be met, provided that:
        1. 12 CFR 1007.103(a)(4)(i)(A)
          The employment information in paragraphs (d)(1)(i)(C) and (d)(1)(ii) of this section is updated and the requirements of paragraph (d)(2) of this section are met;
        2. 12 CFR 1007.103(a)(4)(i)(B)
          New fingerprints of the employee are submitted to the Registry for a background check, as required by paragraph (d)(1)(ix) of this section, unless the employee has fingerprints on file with the Registry that are less than 3 years old;
        3. 12 CFR 1007.103(a)(4)(i)(C)
          The covered financial institution information required in paragraphs (e)(1)(i) (to the extent the covered financial institution has not previously met these requirements) and (e)(2)(i) of this section is submitted to the Registry; and
        4. 12 CFR 1007.103(a)(4)(i)(D)
          The registration is maintained pursuant to paragraphs (b) and (e)(1)(ii) of this section, as of the date that the employee becomes subject to this part.
      2. 12 CFR 1007.103(a)(4)(ii)
        Rule for certain acquisitions, mergers, or reorganizations. When registered or licensed mortgage loan originators become covered financial institution employees as a result of an acquisition, consolidation, merger, or reorganization, only the requirements of paragraphs (a)(4)(i)(A), (C), and (D) of this section must be met, and these requirements must be met within 60 days from the effective date of the acquisition, merger, or reorganization.
  2. 12 CFR 1007.103(b)
    Maintaining registration.
    1. 12 CFR 1007.103(b)(1)
      A mortgage loan originator who is registered with the Registry pursuant to paragraph (a) of this section must:
      1. 12 CFR 1007.103(b)(1)(i)
        Except as provided in paragraph (b)(3) of this section, renew the registration during the annual renewal period, confirming the responses set forth in paragraphs (d)(1)(i) through (viii) of this section remain accurate and complete, and updating this information, as appropriate; and
      2. 12 CFR 1007.103(b)(1)(ii)
        Update the registration within 30 days of any of the following events:
        1. 12 CFR 1007.103(b)(1)(ii)(A)
          A change in the name of the registrant;
        2. 12 CFR 1007.103(b)(1)(ii)(B)
          The registrant ceases to be an employee of the covered financial institution; or
        3. 12 CFR 1007.103(b)(1)(ii)(C)
          The information required under paragraphs (d)(1)(iii) through (viii) of this section becomes inaccurate, incomplete, or out-of-date.
    2. 12 CFR 1007.103(b)(2)
      A registered mortgage loan originator must maintain his or her registration, unless the individual is no longer engaged in the activity of a mortgage loan originator.
    3. 12 CFR 1007.103(b)(3)
      The annual registration renewal requirement set forth in paragraph (b)(1) of this section does not apply to a registered mortgage loan originator who has completed his or her registration with the Registry pursuant to paragraph (a)(1) of this section less than 6 months prior to the end of the annual renewal period.
  3. 12 CFR 1007.103(c)
    Effective dates
    1. 12 CFR 1007.103(c)(1)
      Registration. A registration pursuant to paragraph (a)(1) of this section is effective on the date the Registry transmits notification to the registrant that the registrant is registered.
    2. 12 CFR 1007.103(c)(2)
      Renewals or updates. A renewal or update pursuant to paragraph (b) of this section is effective on the date the Registry transmits notification to the registrant that the registration has been renewed or updated.
    3. 12 CFR 1007.103(c)(2)
      Renewals or updates. A renewal or update pursuant to paragraph (b) of this section is effective on the date the Registry transmits notification to the registrant that the registration has been renewed or updated.
  4. 12 CFR 1007.103(d)
    Required employee information
    1. 12 CFR 1007.103(d)(1)
      In general. For purposes of the registration required by this section, a covered financial institution must require each employee who is a mortgage loan originator to submit to the Registry, or must submit on behalf of the employee, the following categories of information, to the extent this information is collected by the Registry:
      1. 12 CFR 1007.103(d)(1)(i)
        Identifying information, including the employee's:
        1. 12 CFR 1007.103(d)(1)(i)(A)
          Name and any other names used;
        2. 12 CFR 1007.103(d)(1)(i)(B)
          Home address and contact information;
        3. 12 CFR 1007.103(d)(1)(i)(C)
          Principal business location address and business contact information;
        4. 12 CFR 1007.103(d)(1)(i)(D)
          Social security number;
        5. 12 CFR 1007.103(d)(1)(i)(E)
          Gender; and
        6. 12 CFR 1007.103(d)(1)(i)(F)
          Date and place of birth;
      2. 12 CFR 1007.103(d)(1)(ii)
        Financial services-related employment history for the 10 years prior to the date of registration or renewal, including the date the employee became an employee of the covered financial institution;
      3. 12 CFR 1007.103(d)(1)(iii)
        Convictions of any criminal offense involving dishonesty, breach of trust, or money laundering against the employee or organizations controlled by the employee, or agreements to enter into a pretrial diversion or similar program in connection with the prosecution for such offense(s);
      4. 12 CFR 1007.103(d)(1)(iv)
        Civil judicial actions against the employee in connection with financial services-related activities, dismissals with settlements, or judicial findings that the employee violated financial services-related statutes or regulations, except for actions dismissed without a settlement agreement;
      5. 12 CFR 1007.103(d)(1)(v)
        Actions or orders by a state or Federal regulatory agency or foreign financial regulatory authority that:
        1. 12 CFR 1007.103(d)(1)(v)(A)
          Found the employee to have made a false statement or omission or been dishonest, unfair or unethical; to have been involved in a violation of a financial services-related regulation or statute; or to have been a cause of a financial services-related business having its authorization to do business denied, suspended, revoked, or restricted;
        2. 12 CFR 1007.103(d)(1)(v)(B)
          Are entered against the employee in connection with a financial services-related activity;
        3. 12 CFR 1007.103(d)(1)(v)(C)
          Denied, suspended, or revoked the employee's registration or license to engage in a financial services-related activity; disciplined the employee or otherwise by order prevented the employee from associating with a financial services-related business or restricted the employee's activities; or
        4. 12 CFR 1007.103(d)(1)(v)(D)
          Barred the employee from association with an entity or its officers regulated by the agency or authority or from engaging in a financial services-related business;
      6. 12 CFR 1007.103(d)(1)(vi)
        Final orders issued by a state or Federal regulatory agency or foreign financial regulatory authority based on violations of any law or regulation that prohibits fraudulent, manipulative, or deceptive conduct;
      7. 12 CFR 1007.103(d)(1)(vii)
        Revocation or suspension of the employee's authorization to act as an attorney, accountant, or state or Federal contractor;
      8. 12 CFR 1007.103(d)(1)(viii)
        Customer-initiated financial services-related arbitration or civil action against the employee that required action, including settlements, or which resulted in a judgment; and
      9. 12 CFR 1007.103(d)(1)(ix)
        Fingerprints of the employee, in digital form if practicable, and any appropriate identifying information for submission to the Federal Bureau of Investigation and any governmental agency or entity authorized to receive such information in connection with a state and national criminal history background check; however, fingerprints provided to the Registry that are less than 3 years old may be used to satisfy this requirement.
    2. 12 CFR 1007.103(d)(2)
      Employee authorizations and attestation. An employee registering as a mortgage loan originator or renewing or updating his or her registration under this part, and not the employing covered financial institution or other employees of the covered financial institution, must:
      1. 12 CFR 1007.103(d)(2)(i)
        Authorize the Registry and the employing institution to obtain information related to sanctions or findings in any administrative, civil, or criminal action, to which the employee is a party, made by any governmental jurisdiction;
      2. 12 CFR 1007.103(d)(2)(ii)
        Attest to the correctness of all information required by paragraph (d) of this section, whether submitted by the employee or on behalf of the employee by the employing covered financial institution; and
      3. 12 CFR 1007.103(d)(2)(iii)
        Authorize the Registry to make available to the public information required by paragraphs (d)(1)(i)(A) and (C), and (d)(1)(ii) through (viii) of this section.
    3. 12 CFR 1007.103(d)(3)
      Submission of information. A covered financial institution may identify one or more employees of the covered financial institution who may submit the information required by paragraph (d)(1) of this section to the Registry on behalf of the covered financial institution's employees provided that this individual, and any employee delegated such authority, does not act as a mortgage loan originator, consistent with paragraph (e)(1)(i)(F) of this section. In addition, a covered financial institution may submit to the Registry some or all of the information required by paragraphs (d)(1) and (e)(2) of this section for multiple employees in bulk through batch processing in a format to be specified by the Registry, to the extent such batch processing is made available by the Registry.
  5. 12 CFR 1007.103(e)
    Required covered financial institution information. A covered financial institution must submit the following categories of information to the Registry:
    1. 12 CFR 1007.103(e)(1)
      Covered financial institution record.
      1. 12 CFR 1007.103(e)(1)(i)
        In connection with the registration of one or more mortgage loan originators:
        1. 12 CFR 1007.103(e)(1)(i)(A)
          Name, main office address, and business contact information;
        2. 12 CFR 1007.103(e)(1)(i)(B)
          Internal Revenue Service Employer Tax Identification Number (EIN);
        3. 12 CFR 1007.103(e)(1)(i)(C)
          Research Statistics Supervision and Discount (RSSD) number, as issued by the Board of Governors of the Federal Reserve System;
        4. 12 CFR 1007.103(e)(1)(i)(D)
          Identification of its primary Federal regulator;
        5. 12 CFR 1007.103(e)(1)(i)(E)
          Name(s) and contact information of the individual(s) with authority to act as the covered financial institution's primary point of contact for the Registry;
        6. 12 CFR 1007.103(e)(1)(i)(F)
          Name(s) and contact information of the individual(s) with authority to enter the information required by paragraphs (d)(1) and (e) of this section to the Registry and who may delegate this authority to other individuals. For the purpose of providing information required by paragraph (e) of this section, this individual and their delegates must not act as mortgage loan originators unless the covered financial institution has 10 or fewer full time or equivalent employees and is not a subsidiary; and
        7. 12 CFR 1007.103(e)(1)(i)(G)
          If a subsidiary of a national bank, member bank, savings association, or insured state nonmember bank, indication that it is a subsidiary and the RSSD number of the parent institution; if an operating subsidiary of an agricultural credit association, indication that it is a subsidiary, and the RSSD number of the parent agricultural credit association.
      2. 12 CFR 1007.103(e)(1)(ii)
        Attestation. The individual(s) identified in paragraphs (e)(1)(i)(E) and (F) of this section must comply with Registry protocols to verify their identity and must attest that they have the authority to enter data on behalf of the covered financial institution, that the information provided to the Registry pursuant to this paragraph (e) is correct, and that the covered financial institution will keep the information required by this paragraph (e) current and will file accurate supplementary information on a timely basis.
      3. 12 CFR 1007.103(e)(1)(iii)
        A covered financial institution must update the information required by this paragraph (e) of this section within 30 days of the date that this information becomes inaccurate.
      4. 12 CFR 1007.103(e)(1)(iv)
        A covered financial institution must renew the information required by paragraph (e) of this section on an annual basis.
    2. 12 CFR 1007.103(e)(2)
      Employee information. In connection with the registration of each employee who acts as a mortgage loan originator:
      1. 12 CFR 1007.103(e)(2)(i)
        After the information required by paragraph (d) of this section has been submitted to the Registry, confirmation that it employs the registrant; and
      2. 12 CFR 1007.103(e)(2)(ii)
        Within 30 days of the date the registrant ceases to be an employee of the covered financial institution, notification that it no longer employs the registrant and the date the registrant ceased being an employee.
12 CFR 1007.104

Eff: 12/19/2011
Section 104 - Policies and procedures
12 CFR 1007.105

Eff: 12/19/2011
Section 105 - Use of unique identifier
  1. 12 CFR 1007.105(a)
    The covered financial institution shall make the unique identifier(s) of its registered mortgage loan originator(s) available to consumers in a manner and method practicable to the institution.
  2. 12 CFR 1007.105(b)
    A registered mortgage loan originator shall provide his or her unique identifier to a consumer:
    1. 12 CFR 1007.105(b)(1)
      Upon request;
    2. 12 CFR 1007.105(b)(2)
      Before acting as a mortgage loan originator; and
    3. 12 CFR 1007.105(b)(3)
      Through the originator's initial written communication with a consumer, if any, whether on paper or electronically.
12 CFR 1007 App. A

Eff: 12/19/2011
Appendix A - Examples of Mortgage Loan Originator Activities
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