The Federal Deposit Insurance Corporation (FDIC) has published proposals for comment in the US Federal Register that would introduce new requirements for the registration of residential mortgage loan originators, thus adding new legal entity identifiers into the Nationwide Mortgage Licensing System and Registry (NMLSR). Under the proposals, on which firms must provide feedback by the 20 April, the NMLSR would add another new system of records to cover personal information submitted by residential mortgage loan originators under the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act).
The SAFE Act requires that banks, savings associations, credit unions or Farm Credit System institutions and some of their related subsidiaries that act as residential mortgage loan originators to register with the NMLSR, obtain a unique identifier and maintain this registration in order to allow supervisors to track mortgage providers operating in the US market. The NMLSR then collects and stores information concerning these residential mortgage loan originators’ identities including personal history and experience in a web-based data repository. These entities are also given unique identification numbers for the retrieval and referencing of this data.
The Conference of State Bank Supervisors (CSBS) in its feedback to the Office of Financial Research (OFR) referenced this system in January as an example of a unique identifier structure that could be used as a logical framework for building the new legal entity identifier upon.
See the full details of the proposals in the Federal Register here.
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