Will Some Have To Shutter Operations On July 29?
DALLAS-Will a credit union that has not yet registered its mortgage staff by July 29 be forced to shut down operations as the result of a new law?
That's the question the Texas CU League has been working with regulators to answer. The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) requires all residential mortgage originators at credit unions (and banks) to register with the Nationwide Mortgage Licensing System by July 29.
"Time is running short and the Texas Credit Union Department has raised concerns about the number of credit unions in our state who have yet to register their mortgage staff," the Texas league has noted.
TCUL went on to quote the National Mortgage Licensing System's blog, which said individual mortgage loan officers, or MLOs, employed by federally regulated institutions are responsible for registering themselves, "but the employing institution also must complete a number of steps in order for the MLO to become actively registered. These steps include creating the institution's account, submitting the Form MU1R, and confirming each MLO's employment within NMLS."
Registration "does take time," the league has cautioned, adding, "Waiting until the deadline looms could result in significant delays, particularly if there is a significant number of late filers. If there's one message for credit unions who are offering mortgages it is to register early. Don't risk having to temporarily close down your mortgage operation while the paperwork goes through."