CFPB enters 60 day Comment period for January 2013 finalization
Set Qualification and Screening Standards: Under state law and the federal Secure and Fair Enforcement for Mortgage Licensing Act, loan originators currently have to meet different sets of standards, depending on whether they work for a bank, thrift, mortgage brokerage, or nonprofit organization. The CFPB is proposing rules to implement Dodd-Frank Act requirements that all loan originators be qualified. The proposal would help level the playing field for different types of loan originators so consumers could be confident that originators are ethical and knowledgeable. The proposed rule includes:
- Character and Fitness Requirements: All loan originators would be subject to the same standards for character, fitness, and financial responsibility;
- Criminal Background Checks: Loan originators would be screened for felony convictions; and
- Training Requirements: Loan originators would be required to undertake training to ensure they have the knowledge necessary for the types of loans they originate.