HUD Issues Rules to Implement the S.A.F.E. Act
The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (the "S.A.F.E.
Act") was passed by Congress and implemented in Oregon by the 2009 Legislature. It requires
licensing of persons who do residential mortgage loan origination and work for nonbank mortgage
Under the Act, the U.S. Department of Housing and Urban Development (HUD) was
charged with adopting rules to implement the Act and ensuring that states meet minimum standards
for compliance. When the bill passed, there were questions and concerns about whether and how
the S.A.F.E. Act applied to individual employees of local government housing agencies and non-profit
From our initial review of the new HUD rules, it appears that most employees
of local governments and bona fide non-profit organizations will be exempt from the mortgage
loan originator licensing requirements.
HUD rules do authorize state regulators to further implement these rules regarding
the "commercial content" of loan originator activities and the determination of how
an organization qualifies as an exempt "non-profit." Over the next several months,
the Division of Finance and Corporate Securities will develop rules implementing the exemptions
as permitted by these final rules, involving a variety of stakeholders.
For more information, please contact Richard Y. Blackwell, Senior Policy Analyst
at 503-947-7056 or firstname.lastname@example.org.
Memo regarding S.A.F.E. Act rules
CSBS - S.A.F.E. HUD rule summary