Federal bank regulators opened the initial registration period Monday for originators to sign up with the Nationwide Mortgage Licensing System and Registry.
Institutions will have until July 29 to register during the initial period. Under rules implementing the 2008 Secure and Fair Enforcement for Mortgage Licensing Act, any bank, thrift, credit union or Farm Credit System originator must be part of the registry. However, regulators provided an exception for any mortgage originator that issued five or fewer mortgage loans during the last 12 months.
Regulators also are requiring institutions to adopt written procedures to ensure their originators are in compliance, as well as perform annual updates of their originators' registration. Following the 180-day initial registration period, any existing or new employee not complying with the requirements will be prohibited from issuing a mortgage.
