U.S. Rep. Steve Stivers’ (R-OH) SAFE Transitional License Act, H.R. 2948, a bipartisan measure to provide regulatory relief for registered mortgage loan originators changing employment, passed the U.S. House of Representatives on Feb. 14 as part of a legislative package from the House Financial Services Committee.
“I am hopeful this bill will be considered by the Senate soon,” said Rep. Stivers, whose measure was incorporated into the TRID (TILA-RESPA Integrated Disclosure) Improvement Act of 2017, H.R. 3978. TRID incorporates the acronyms of TILA for the Truth-in-Lending Act and RESPA for the Real Estate Settlement Procedures Act.
Specifically, Stivers’ provision would amend the Secure And Fair Enforcement for Mortgage Licensing Act of 2008, or SAFE Act, and temporarily allow loan originators meeting certain requirements to continue originating loans if they move from one state to another or from a depository institution to a non-bank concern, according to a congressional record summary.
The SAFE Transitional License Act’s flexibility would benefit the loan originator, who can continue working on underwriting loans; help state-licensed non-depository firms attract and retain experienced and capable employees; and uphold the SAFE Act’s consumer protections, according to Stivers’ office.
“An unintentional consequence of the current law is inhibiting job mobility and putting independent mortgage lenders at a considerable disadvantage in recruiting talented individuals,” said Rep. Stivers, who is serving his fourth term on the House Financial Services Committee.
Rep. Stivers said mortgage loan officers switching jobs from a federally-insured institution to a non-bank lender usually “must sit on their hands for weeks, even months, while they meet the SAFE Act’s licensing and testing requirements,” regardless of whether they hold a professional registration or have had previous employment experience. “This is simply unfair,” the congressman said.
Rep. Stivers introduced H.R. 2948 on June 20, 2017. U.S. Reps. Bruce Poliquin (R-ME), Joyce Beatty (D-OH), and Kyrsten Sinema (D-AZ) signed on as original cosponsors among 46 total cosponsors.
H.R. 2948 has a companion bill in the Senate, S. 1753, introduced on Aug. 3, 2017 by U.S. Sen. Dean Heller (R-NV). The bill has eight cosponsors, including U.S. Sen. Thom Tillis (R-NC), and awaits consideration by the Senate Banking, Housing, and Urban Affairs Committee.
The House-approved bipartisan legislative package, H.R. 3978, was originally introduced on Oct. 5, 2017 by U.S. Reps. French Hill (R-AR) and Ruben Kihuen (D-NV). The bill’s 18 cosponsors included Rep. Stivers along with U.S. Reps. Andy Barr (R-KY) and Tom Emmer (R-MN). On Feb. 15 the bill was referred to the Senate Banking, Housing, and Urban Affairs Committee for its consideration.