12 Cfr 1007 (1-1-19 Ed)

Bur. of Consumer Financial Protection

§ 1007.101

that are substantially similar to, or
that provide greater protection to applicants than, those imposed under sections 803 through 812 of the Act or that
there is not, in fact, adequate provision
for state enforcement.
(b) Before revoking any such exemption, the Bureau shall notify the appropriate state official of the facts or conduct that, in the Bureau’s opinion,
warrant such revocation, and shall afford that state such opportunity as the
Bureau deems appropriate in the circumstances to demonstrate or achieve
compliance.
(c) If, after having been afforded the
opportunity to demonstrate or achieve
compliance, the Bureau determines
that the state has not done so, notice
of the Bureau’s intention to revoke
such exemption shall be published in
the FEDERAL REGISTER. A period of
time shall be allowed from the date of
such publication for interested persons
to submit written comments to the Bureau regarding the intention to revoke.
(d) If such exemption is revoked, notice of such revocation shall be published by the Bureau in the FEDERAL
REGISTER, and a copy of such notice
shall be furnished to the appropriate
state official, to the Federal authorities responsible for enforcement of the
requirements of the Act, and to the Attorney General of the United States.
The revocation shall become effective,
and the class of debt collection practices affected within that state shall
become subject to the requirements of
sections 803 through 812 of the Act, 90
days after the date of publication of
the notice in the FEDERAL REGISTER.

Subpart B [Reserved]

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PART 1007—S.A.F.E. MORTGAGE LICENSING ACT—FEDERAL REGISTRATION
OF
RESIDENTIAL
MORTGAGE LOAN ORIGINATORS
(REGULATION G)
Sec.
1007.101 Authority, purpose, and scope of
this part.
1007.102 Definitions applicable to this part.
1007.103 Registration of mortgage loan
originators.
1007.104 Policies and procedures.
1007.105 Use of Unique Identifier.

APPENDIX A TO PART 1007—EXAMPLES OF
MORTGAGE LOAN ORIGINATOR ACTIVITIES
AUTHORITY: 12 U.S.C. 5101–5116; 15 U.S.C.
1604(a), 1639b; Pub. L. 111–203, 124 Stat. 1376.
SOURCE: 76 FR 78487, Dec. 19, 2011, unless
otherwise noted.

§ 1007.101 Authority,
scope.

purpose,

(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.
(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.
(c) Scope—(1) In general. This part applies to:
(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;
(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;
(iii) Insured state nonmember banks
(including
state-licensed
insured

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§ 1007.102

12 CFR Ch. X (1–1–19 Edition)

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;
(iv) Savings associations, their operating subsidiaries (collectively referred
to in this part as savings associations),
and their employees who act as mortgage loan originators;
(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
(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) De minimis exception. (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.
(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.
(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) 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 nonfederally 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.
§ 1007.102

Definitions.

For purposes of this part, the following definitions apply:
Administrative or clerical tasks means
the receipt, collection, and distribution
of information common for the processing or underwriting of a loan in the
residential mortgage industry and
communication with a consumer to obtain information necessary for the
processing or underwriting of a residential mortgage loan.
Annual renewal period means November 1 through December 31 of each
year.
Bureau means the Bureau of Consumer Financial Protection.

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Bur. of Consumer Financial Protection

§ 1007.103

Covered financial institution means
any national bank, member bank, insured state nonmember bank, savings
association, Farm Credit System institution, or federally insured credit
union as any such term is defined in
§ 1007.101(c)(1). Covered financial institution also includes a non-federally insured credit union that registers subject to the conditions of § 1007.101(c)(3).
Mortgage loan originator means
(1) An individual who:
(i) Takes a residential mortgage loan
application; and
(ii) Offers or negotiates terms of a
residential mortgage loan for compensation or gain.
(2)(i) The term mortgage loan originator does not include:
(A) An individual who performs purely administrative or clerical tasks on
behalf of an individual who is described
as a mortgage loan originator in this
section;
(B) An individual who only performs
real estate brokerage activities (as defined in 12 U.S.C. 5102(4)(D)) and is licensed or registered as a real estate
broker in accordance with applicable
state law, unless the individual is compensated by a lender, a mortgage
broker, or other mortgage loan originator or by any agent of such lender,
mortgage broker, or other mortgage
loan originator, and meets the definition of mortgage loan originator in
this section; or
(C) An individual or entity solely involved in extensions of credit related
to timeshare plans, as that term is defined in 11 U.S.C. 101(53D).
(ii) Examples of activities that
would, and would not, result in an employee meeting the definition of mortgage loan originator are provided in appendix A to this part.
Nationwide Mortgage Licensing System
and Registry or Registry means the system developed and maintained by the
Conference of State Bank Supervisors
and the American Association of Residential Mortgage Regulators for the
state licensing and registration of
state-licensed mortgage loan originators and the registration of mortgage
loan originators pursuant to 12 U.S.C.
5107.
Registered mortgage loan originator or
registrant means any individual who:

(1) Meets the definition of mortgage
loan originator and is an employee of a
covered financial institution; and
(2) Is registered pursuant to this part
with, and maintains a unique identifier
through, the Registry.
Residential mortgage loan means any
loan primarily for personal, family, or
household use that is secured by a
mortgage, deed of trust, or other equivalent consensual security interest on a
dwelling (as defined in section 103(v) of
the Truth in Lending Act, 15 U.S.C.
1602(v)) or residential real estate upon
which is constructed or intended to be
constructed a dwelling, and includes
refinancings, reverse mortgages, home
equity lines of credit and other first
and additional lien loans that meet the
qualifications listed in this definition.
This definition does not amend or supersede 12 CFR 613.3030(c) with respect
to Farm Credit System institutions.
Unique identifier means a number or
other identifier that:
(1) Permanently identifies a registered mortgage loan originator;
(2) Is assigned by protocols established by the Nationwide Mortgage Licensing System and Registry and the
Bureau to facilitate:
(i) Electronic tracking of mortgage
loan originators; and
(ii) Uniform identification of, and
public access to, the employment history of and the publicly adjudicated
disciplinary and enforcement actions
against mortgage loan originators; and
(3) Must not be used for purposes
other than those set forth under the
S.A.F.E. Act.
§ 1007.103 Registration
loan originators.

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mortgage

(a) Registration requirement—(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.

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§ 1007.103

12 CFR Ch. X (1–1–19 Edition)

(2) Covered financial institution requirement—(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.
(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) [Reserved]
(4) Employees previously registered or licensed through the Registry—(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:
(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;
(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;
(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
(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.
(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.
(b) Maintaining registration. (1) A
mortgage loan originator who is registered with the Registry pursuant to
paragraph (a) of this section must:
(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
(ii) Update the registration within 30
days of any of the following events:
(A) A change in the name of the registrant;
(B) The registrant ceases to be an
employee of the covered financial institution; or
(C) The information required under
paragraphs (d)(1)(iii) through (viii) of
this section becomes inaccurate, incomplete, or out-of-date.
(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) 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.
(c) Effective dates—(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) 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.

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Bur. of Consumer Financial Protection

§ 1007.103

(d) Required employee information—(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:
(i) Identifying information, including
the employee’s:
(A) Name and any other names used;
(B) Home address and contact information;
(C) Principal business location address and business contact information;
(D) Social security number;
(E) Gender; and
(F) Date and place of birth;
(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;
(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);
(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;
(v) Actions or orders by a state or
Federal regulatory agency or foreign
financial regulatory authority that:
(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;
(B) Are entered against the employee
in connection with a financial servicesrelated activity;

(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
(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;
(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;
(vii) Revocation or suspension of the
employee’s authorization to act as an
attorney, accountant, or state or Federal contractor;
(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
(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) 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:
(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;
(ii) Attest to the correctness of all
information required by paragraph (d)
of this section, whether submitted by

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§ 1007.103

12 CFR Ch. X (1–1–19 Edition)

the employee or on behalf of the employee by the employing covered financial institution; and
(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) 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.
(e) Required covered financial institution information. A covered financial institution must submit the following
categories of information to the Registry:
(1) Covered financial institution record.
(i) In connection with the registration
of one or more mortgage loan originators:
(A) Name, main office address, and
business contact information;
(B) Internal Revenue Service Employer Tax Identification Number
(EIN);
(C) Research Statistics Supervision
and Discount (RSSD) number, as issued
by the Board of Governors of the Federal Reserve System;
(D) Identification of its primary Federal regulator;
(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;
(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
(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.
(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.
(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.
(iv) A covered financial institution
must renew the information required
by paragraph (e) of this section on an
annual basis.
(2) Employee information. In connection with the registration of each employee who acts as a mortgage loan
originator:
(i) After the information required by
paragraph (d) of this section has been
submitted to the Registry, confirmation that it employs the registrant;
and
(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.

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Bur. of Consumer Financial Protection

Pt. 1007, App. A

§ 1007.104 Policies and procedures.
A covered financial institution that
employs one or more mortgage loan
originators must adopt and follow written policies and procedures designed to
assure compliance with this part.
These policies and procedures must be
appropriate to the nature, size, complexity, and scope of the mortgage
lending activities of the covered financial institution, and apply only to
those employees acting within the
scope of their employment at the covered financial institution. At a minimum, these policies and procedures
must:
(a) Establish a process for identifying
which employees of the covered financial institution are required to be registered mortgage loan originators;
(b) Require that all employees of the
covered financial institution who are
mortgage loan originators be informed
of the registration requirements of the
S.A.F.E. Act and this part and be instructed on how to comply with such
requirements and procedures;
(c) Establish procedures to comply
with the unique identifier requirements in § 1007.105;
(d) Establish reasonable procedures
for confirming the adequacy and accuracy of employee registrations, including updates and renewals, by comparisons with its own records;
(e) Establish reasonable procedures
and tracking systems for monitoring
compliance with registration and renewal requirements and procedures;
(f) Provide for independent testing
for compliance with this part to be
conducted at least annually by covered
financial institution personnel or by an
outside party;
(g) Provide for appropriate action in
the case of any employee who fails to
comply with the registration requirements of the S.A.F.E. Act, this part, or
the covered financial institution’s related policies and procedures, including
prohibiting such employees from acting as mortgage loan originators or
other appropriate disciplinary actions;
(h) Establish a process for reviewing
employee criminal history background
reports received pursuant to this part,
taking appropriate action consistent
with applicable Federal law, including
section 19 of the Federal Deposit Insur-

ance Act (12 U.S.C. 1829), section 206 of
the Federal Credit Union Act (12 U.S.C.
1786(i)), and section 5.65(d) of the Farm
Credit Act of 1971, as amended (12
U.S.C. 2277a–14(d)), and implementing
regulations with respect to these reports, and maintaining records of these
reports and actions taken with respect
to applicable employees; and
(i) Establish procedures designed to
ensure that any third party with which
the covered financial institution has
arrangements related to mortgage loan
origination has policies and procedures
to comply with the S.A.F.E. Act, including appropriate licensing and/or
registration of individuals acting as
mortgage loan originators.
§ 1007.105

Use of unique identifier.

(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.
(b) A registered mortgage loan originator shall provide his or her unique
identifier to a consumer:
(1) Upon request;
(2) Before acting as a mortgage loan
originator; and
(3) Through the originator’s initial
written communication with a consumer, if any, whether on paper or
electronically.
APPENDIX A TO PART 1007—EXAMPLES
OF MORTGAGE LOAN ORIGINATOR ACTIVITIES

This appendix provides examples to aid in
the understanding of activities that would
cause an employee of a covered financial institution to fall within or outside the definition of mortgage loan originator. The examples in this appendix are not all-inclusive.
They illustrate only the issue described and
do not illustrate any other issues that may
arise under this part. For purposes of the examples below, the term ‘‘loan’’ refers to a
residential mortgage loan.
(a) Taking a loan application. The following
examples illustrate when an employee takes,
or does not take, a loan application.
(1) Taking an application includes: receiving information provided in connection with
a request for a loan to be used to determine
whether the consumer qualifies for a loan,
even if the employee:

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Pt. 1007, App. A

12 CFR Ch. X (1–1–19 Edition)

(i) Has received the consumer’s information indirectly in order to make an offer or
negotiate a loan;
(ii) Is not responsible for verifying information;
(iii) Is inputting information into an online application or other automated system
on behalf of the consumer; or
(iv) Is not engaged in approval of the loan,
including determining whether the consumer
qualifies for the loan.
(2) Taking an application does not include
any of the following activities performed
solely or in combination:
(i) Contacting a consumer to verify the information in the loan application by obtaining documentation, such as tax returns or
payroll receipts;
(ii) Receiving a loan application through
the mail and forwarding it, without review,
to loan approval personnel;
(iii) Assisting a consumer who is filling out
an application by clarifying what type of information is necessary for the application or
otherwise explaining the qualifications or
criteria necessary to obtain a loan product;
(iv) Describing the steps that a consumer
would need to take to provide information to
be used to determine whether the consumer
qualifies for a loan or otherwise explaining
the loan application process;
(v) In response to an inquiry regarding a
prequalified offer that a consumer has received from a covered financial institution,
collecting only basic identifying information
about the consumer and forwarding the consumer to a mortgage loan originator; or
(vi) Receiving information in connection
with a modification to the terms of an existing loan to a borrower as part of the covered
financial institution’s loss mitigation efforts
when the borrower is reasonably likely to default.
(b) Offering or negotiating terms of a loan.
The following examples are designed to illustrate when an employee offers or negotiates
terms of a loan, and conversely, what does
not constitute offering or negotiating terms
of a loan.
(1) Offering or negotiating the terms of a
loan includes:
(i) Presenting a loan offer to a consumer
for acceptance, either verbally or in writing,
including, but not limited to, providing a
disclosure of the loan terms after application
under the Truth in Lending Act, even if:
(A) Further verification of information is
necessary;
(B) The offer is conditional;
(C) Other individuals must complete the
loan process; or
(D) Only the rate approved by the covered
financial institution’s loan approval mechanism function for a specific loan product is
communicated without authority to negotiate the rate.

(ii) Responding to a consumer’s request for
a lower rate or lower points on a pending
loan application by presenting to the consumer a revised loan offer, either verbally or
in writing, that includes a lower interest
rate or lower points than the original offer.
(2) Offering or negotiating terms of a loan
does not include solely or in combination:
(i) Providing general explanations or descriptions in response to consumer queries
regarding qualification for a specific loan
product, such as explaining loan terminology
(e.g., debt-to-income ratio); lending policies
(e.g., the loan-to-value ratio policy of the
covered financial institution); or product-related services;
(ii) In response to a consumer’s request, informing a consumer of the loan rates that
are publicly available, such as on the covered
financial institution’s Web site, for specific
types of loan products without communicating to the consumer whether qualifications are met for that loan product;
(iii) Collecting information about a consumer in order to provide the consumer with
information on loan products for which the
consumer generally may qualify, without
presenting a specific loan offer to the consumer for acceptance, either verbally or in
writing;
(iv) Arranging the loan closing or other aspects of the loan process, including communicating with a consumer about those arrangements, provided that communication
with the consumer only verifies loan terms
already offered or negotiated;
(v) Providing a consumer with information
unrelated to loan terms, such as the best
days of the month for scheduling loan closings at the covered financial institution;
(vi) Making an underwriting decision about
whether the consumer qualifies for a loan;
(vii) Explaining or describing the steps or
process that a consumer would need to take
in order to obtain a loan offer, including
qualifications or criteria that would need to
be met without providing guidance specific
to that consumer’s circumstances; or
(viii) Communicating on behalf of a mortgage loan originator that a written offer, including disclosures provided pursuant to the
Truth in Lending Act, has been sent to a
consumer without providing any details of
that offer.
(c) Offering or negotiating a loan for compensation or gain. The following examples illustrate when an employee does or does not
offer or negotiate terms of a loan ‘‘for compensation or gain.’’
(1) Offering or negotiating terms of a loan
for compensation or gain includes engaging
in any of the activities in paragraph (b)(1) of
this appendix in the course of carrying out
employment duties, even if the employee
does not receive a referral fee or commission
or other special compensation for the loan.

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Bur. of Consumer Financial Protection

§ 1008.1

(2) Offering or negotiating terms of a loan
for compensation or gain does not include
engaging in a seller-financed transaction for
the employee’s personal property that does
not involve the covered financial institution.

PART 1008—S.A.F.E. MORTGAGE LICENSING ACT—STATE COMPLIANCE AND BUREAU REGISTRATION SYSTEM (REGULATION H)
Sec.
1008.1
1008.3

1008.20
1008.23

CENSE

APPENDIX D TO PART 1008—ATTORNEYS: CIRCUMSTANCES THAT REQUIRE A STATE
MORTGAGE LOAN ORIGINATOR LICENSE

Purpose.
Confidentiality of information.

AUTHORITY: 12 U.S.C. 5101–5116; Pub. L. 111–
203, 124 Stat. 1376.

Subpart A—General

SOURCE: 76 FR 78487, Dec. 19, 2011, unless
otherwise noted.

Scope of this subpart.
Definitions.

Subpart B—Determination of State
Compliance With the S.A.F.E. Act
1008.101 Scope of this subpart.
1008.103 Individuals required to be licensed
by states.
1008.105 Minimum loan originator license
requirements.
1008.107 Minimum annual license renewal
requirements.
1008.109 Effective date of state requirements
imposed on individuals.
1008.111 Other minimum requirements for
state licensing systems.
1008.113 Performance standards.
1008.115 Determination of noncompliance.

Subpart C—Bureau’s Loan Originator Licensing System and Bureau’s Nationwide Mortgage Licensing and Registry
System
1008.201 Scope of this subpart.
1008.203 Bureau’s establishment of loan
originator licensing system.
1008.205 Bureau’s establishment of nationwide mortgage licensing system and registry.

Subpart D—Minimum Requirements for
Administration of the NMLSR
1008.301 Scope of this subpart.
1008.303 Financial reporting.
1008.305 Data security.
1008.307 Fees.
1008.309 Absence of liability for good-faith
administration.

Subpart E—Enforcement of Bureau
Licensing System
kpayne on VMOFRWIN702 with $$_JOB

APPENDIX A TO PART 1008—EXAMPLES OF
MORTGAGE LOAN ORIGINATOR ACTIVITIES
APPENDIX B TO PART 1008—ENGAGING IN THE
BUSINESS OF A LOAN ORIGINATOR: COMMERCIAL CONTEXT AND HABITUALNESS
APPENDIX C TO PART 1008—INDEPENDENT CONTRACTORS AND LOAN PROCESSOR AND UNDERWRITER ACTIVITIES THAT REQUIRE A
STATE MORTGAGE LOAN ORIGINATOR LI-

1008.401 Bureau’s authority to examine loan
originator records.
1008.403–1008.405 [Reserved]

§ 1008.1 Purpose.
(a) Authority. This part, known as
Regulation H, is issued by the Bureau
of Consumer Financial Protection to
implement 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.).
(b) Purpose. The purpose of this part
is to enhance consumer protection and
reduce fraud by directing states to
adopt minimum uniform standards for
the licensing and registration of residential mortgage loan originators and
to participate in a nationwide mortgage licensing system and registry
database of residential mortgage loan
originators. Under the S.A.F.E. Act, if
the Bureau determines that a state’s
loan origination licensing system does
not meet the minimum requirements
of the S.A.F.E. Act, the Bureau is
charged with establishing and implementing a system for all loan originators in that state. Additionally, if at
any time the Bureau determines that
the nationwide mortgage licensing system and registry is failing to meet the
S.A.F.E. Act’s requirements, the Bureau is charged with establishing and
maintaining a licensing and registry
database for loan originators.
(c) Organization. The regulation is divided into subparts and appendices as
follows:
(1) Subpart A establishes the definitions applicable to this part.
(2) Subpart B provides the minimum
standards that a state must meet in licensing loan originators, including

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