Proposed Transitional Licensing Bill Harms Consumers

Proposed Transitional Licensing Bill Harms Consumers

NAMB urges legislators to preserve consumer protections in the SAFE Act

WASHINGTON, DC – April, 2016 – (RealEstateRama) — The Association of Mortgage Professionals has expressed concerns regarding H.R. 2121, The Transitional Licensing Act of 2015, which is currently being considered by the House of Representatives.

H.R. 2121 would allow unlicensed, federally-registered loan originators to have a 120-day temporary license where they would be allowed to originate loans prior to completing the requirements currently established in the Secure and Fair Enforcement of Mortgage Licensing (SAFE) Act. NAMB believes state law and regulations are in place for consumer protection and should not be by-passed by those not properly educated and tested. HR 2121 and any Senate companion bill will dilute all states rights to protect consumers.

“One of the touchstones of the Dodd-Frank Act was to permit states to go beyond Federal law to protect consumers in their state. HR 2121 completely nullifies state consumer protections”, says Valerie Saunders, NAMB Government Affairs Chair.

“In 2012, the CFPB stated that its regulations do not allow states to provide for transitional licensing for registered but unlicensed loan originators who leave banks to act as loan originators while pursuing a state license. In addition, CSBS remains neutral on a bill they should have a solid opinion on. This destroys state consumer protections by cramming down a licensing construct that states have demonstrated they don’t want”, said Rocke Andrews, President of NAMB.

NAMB, as the prime creator and advocate of the current SAFE Act, believes all loan originators need to prepare for working in their home state or any other state by getting the education, criminal background checks, test-taking, and making application for a loan originator license before they deal with consumers. This is the only way to protect the stringent requirements set out in state and Federal law today and to protect consumers from individuals not fully licensed seeking to enter the loan originator work force.

NAMB—The Association of Mortgage Professionals is a trade association of mortgage professionals with membership in all 50 states and the District of Columbia. NAMB provides education, certification and government affairs representation for the mortgage industry. For more information, visit

Contact: Valerie Saunders
APRIL 12, 2016 NAMB Government Affairs Chair
(904) 651-3143


The National Association of Mortgage Brokers (NAMB) is the voice of the mortgage broker industry, representing the interests of mortgage brokers and homebuyers since 1973. The Association is committed to promoting the highest degree of professionalism and ethical standards for its members. In addition to mandating members adhere to a professional code of ethics, NAMB provides mortgage brokers with professional education opportunities, and offers rigorous certification programs to recognize members with the highest levels of professional knowledge and education.


Jon Otto
Phone: (703) 342-5851

National Association of Mortgage Brokers
7900 Westpark Dr., Suite T309
McLean, VA 22102

Phone: 703.342.5900
Fax: 703.342.5905

Chief Executive Officer
Roy DeLoach
Phone: 703-342-5900

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