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Financial Services Law Insights and Observations

CFPB issues FAQs on SAFE Act amendments

Agency Rule-Making & Guidance CFPB EGRRCPA Licensing SAFE Act Mortgage Origination

Agency Rule-Making & Guidance

On September 25, the CFPB published four FAQs pertaining to compliance with federal SAFE Act amendments created by the Economic Growth, Regulatory Relief, and Consumer Protection Act (the Act), which take effect on November 24. According to the Bureau, the Act’s amendments “establish temporary authority, which provides a way for eligible loan originators who have applied for a new state loan originator license to act as a loan originator in the application state while the state considers the application.” Specifically, the FAQs address (i) residential mortgage loan originator categories and requirements; (ii) the temporary authority to act as a loan originator, as added by Section 106 of the Act; (iii) guidance concerning state transitional license availability under the SAFE Act; and (iv) the impact of the Act’s amendments on the permissibility of state transitional licensing under the SAFE Act and Regulation H.

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