February 17, 2009
SB 36, introduced in the California State Senate by Ron alderon (D-30) late last year, is a bill looking to amend California’s mortgage lending and mortgage brokering laws, as required by the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (the SAFE Act).
The SAFE Act requires all states to license and register their mortgage loan originators through a nationwide organization called the nationwide Mortgage Licensing System and Registry (NMLSR). Any state that does not implement a mortgage loan originator licensing system, in compliance with the SAFE Act, by July 30, 2009 risks direct intervention by the Secretary of the U.S. Department of Housing and Urban Development (HUD). California law therefore needs to be changed in order for California to retain its existing authority to regulate the mortgage-related activities of California licensees and avoid HUD intervention.