The Consumer
Financial Protection Bureau (CFPB) has issued an Interpretive Rule for one type
of loan originator licensing. The Secure and Fair Enforcement for Mortgage
Licensing Act (SAFE ACT) of 2008 established a national system for licensing
and registration of loan originators which envisioned two categories of
licensing, one for originators working for state-licensed mortgage companies
and those working for federally regulated financial institutions. Subsequently,
Regulation Z which interprets the Truth in Lending Act (TILA), established a
third category of originators, those with temporary origination authority.
These rules apply to individuals who were previously registered or licensed,
are employed by a state-licensed mortgage company, are applying for a new state
loan originator license, and meet other criteria specified in the statute.