H.R. 2643, State Licensing Efficiency Act of 2015

H.R. 2643

State Licensing Efficiency Act of 2015

Date
October 28, 2015 (114th Congress, 1st Session)

Staff Contact
John Huston

Floor Situation

On Wednesday, October 28, 2015, the House will consider H.R. 2643, the State Licensing Efficiency Act of 2015, under suspension of the rules. H.R. 2643 was introduced on June 3, 2015 by Rep. Roger Williams (R-TX) and was referred to the Committee on Financial Services, and in addition, to the Committee on the Judiciary. The Financial Services Committee ordered the bill reported by vote of 57 to 0 on July 29, 2015.

Bill Summary

H.R. 2643 amends the S.A.F.E. Mortgage Licensing Act of 2008 to direct the Attorney General to provide appropriate state officials responsible for regulating financial service providers with access to criminal history information through the National Multistate Licensing System and Registry (NMLS) to the extent that criminal history background checks are required under state law for the licensing of such parties.

Background

In 2008, in an effort to combat fraud among mortgage loan originators,[1] Congress passed the S.A.F.E. Mortgage Licensing Act. The Act sought to increase efficiency in the mortgage loan originator licensing process while still ensuring adequate vetting procedures were put in effect for applicants.

Since its passage, the NMLS has allowed for the registration of mortgage loan originators (“MLO”) in the NMLS. Information included in this database includes the name, contact information, information about their current and past employment in the mortgage industry, and information about any past civil or criminal actions taken against mortgage loan originators.[2]

H.R. 2643 is designed to carry over the systematic efficiencies of the NMLS by directing the Attorney General to provide appropriate state officials responsible for regulating other financial service providers access to criminal history information to the extent that criminal history background checks are required under state law for the licensing of such parties.

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[1] A mortgage loan originator is an institution or individual that works with a borrower to complete a mortgage transaction.
[2] See CFPB post, “Nationwide Mortgage Licensing System & Registry.”

Cost

The Congressional Budget Office (CBO) estimates enacting H.R. 2643 could affect direct spending at CFPB; therefore, pay-as-you-go procedures would apply. However, CBO estimates that any such effects would be negligible. DOJ collects a fee of about $20 for this [background check] service (which is treated as an offset to discretionary spending) and the Department spends those collections mostly in the same year. Thus, CBO estimates that implementing the bill would not have a significant net effect on spending for DOJ.

Additional Information

For questions or further information please contact John Huston with the House Republican Policy Committee by email or at 6-5539.