OCC Seeks Comments on SAFE Act’s MLO Information Collection Requirements

The Office of the Comptroller of the Currency (OCC) recently published a notice and request for comment regarding the Secure and Fair Enforcement for Mortgage Licensing Act’s (SAFE Act) mortgage loan originator (MLO) registration and information collection requirements.

The SAFE Act requires MLOs employed by regulated institutions to register with the Nationwide Mortgage Licensing System and Registry (NMLS) and obtain a unique identifier.  The NMLS specifies categories of information that regulated institutions must require their MLOs to submit at the time of registration, and requires the information to be maintained and updated.   Regulated institutions also must submit information to the NMLS at the time of registration and annually thereafter.

According to the OCC, the NMLS collects the information to, among other things: (i) aggregate and improve the flow of information to and between regulators; (ii) provide increased accountability and tracking of MLOs; (iii) enhance consumer protections; (iv) reduce fraud in the mortgage loan origination process; and (v) provide consumers with easily accessible information at no charge regarding the employment history of, and the publicly adjudicated disciplinary and enforcement actions against, MLOs.

Specifically, the OCC is inviting comment on: (i) whether the collection of information is necessary for the proper performance of the OCC’s functions, including whether the information has practical utility; (ii) the accuracy of the OCC’s estimate of the burden of the collection of information; (iii) ways to enhance the quality, utility, and clarity of the information to be collected; (iv) ways to minimize the burden of the collection on respondents, including through the use of automated collection techniques or other forms of information technology; and (v) estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information.

Although the Dodd-Frank Act transferred this rule to the CFPB, the OCC retains enforcement authority under the rule over national banks, federal savings associations and federal branches and agencies of foreign banks with total assets of $10 billion or less.  The OCC is accepting comments through April 9, 2018.

The notice can be viewed here: https://www.federalregister.gov/documents/2018/02/06/2018-02305/agency-information-collection-activities-information-collection-renewal-comment-request-registration.