Mortgage Bankers, Some Financial Service Firms, Don't Like Some SAFE Act Proposed Regulations from HUD.

37 page letter from Mortgage Bankers Association, commenting on a proposed HUD regulation, is HERE. The Docket for the proposed HUD regulations, with more than 4,000 comments, is HERE.

Generally, MBA and others don't like possible inclusion of loan servicers and loan modification specialists as part of SAFE registration requirements.

Originally created and posted on the Oregon Housing Blog.

Updated: HUD SAFE Act Responsibilities Proposed Rule to be Published in FR Tomorrow.

Update: Federal Register link to proposed regulation, from Tuesday Dec 15th., is HERE.
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Look in tomorrow's /Tuesday Federal Register, an advance copy is available HERE (Link will not work after Monday).

In addition to establishing HUD’s responsibilities under the SAFE Act, through this rule, HUD proposes to clarify or interpret certain statutory provisions that pertain to the scope of the SAFE Act licensing requirements, and other requirements that pertain to the implementation, oversight, and enforcement responsibilities of the states.

Originally created and posted on the Oregon Housing Blog.

States Ask That Loan Modification Specialists Employed by Servicers Be Exempt from Licensing for 3 YEARS After SAFE Act Signed into Law.

The SAFE licensing act would require registration/licensing of loan modification specialists employed by loan servicers.

In a letter HERE, the organizations representing state mortgage regulatory agencies have asked the HUD Secretary agree to delay the licensing requirement for loan modification specialists employed by servicers until July 31, 2011. That's THREE YEARS after the enactment of the legislation that contains the SAFE act provisions.

I would expect that the vast bulk of loan modifications will be completed far before that date, which would effectively exclude these specialists from SAFE act licensing.

That hardly seems like a regulatory reform you can believe in , right?