12 U.S.C. § 5110 — Background checks of loan originators

Page 1792 TITLE 12—BANKS AND BANKING § 5108 originators operating in the State are reg- istered with Nationwide Mortgage Licensing System and Registry. (3) The State loan originator supervisory au- thority is required to regularly report viola- tions of such law, as well as enforcement ac- tions and other relevant information, to the Nationwide Mortgage Licensing System and Registry. (4) The State loan originator supervisory au- thority has a process in place for challenging information contained in the Nationwide Mortgage Licensing System and Registry. (5) The State loan originator supervisory au- thority has established a mechanism to assess civil money penalties for individuals acting as mortgage originators in their State without a valid license or registration. (6) The State loan originator supervisory au- thority has established minimum net worth or surety bonding requirements that reflect the dollar amount of loans originated by a resi- dential mortgage loan originator, or has es- tablished a recovery fund paid into by the loan originators. (e) Temporary extension of period The Director may extend, by not more than 24 months, the 1-year or 2-year period, as the case may be, referred to in subsection (a) for the li- censing of loan originators in any State under a State licensing law that meets the requirements of sections 5104 and 5105 of this title and sub- section (d) if the Director determines that such State is making a good faith effort to establish a State licensing law that meets such require- ments, license mortgage originators under such law, and register such originators with the Na- tionwide Mortgage Licensing System and Reg- istry. (f) Regulation authority (1) In general The Bureau is authorized to promulgate reg- ulations setting minimum net worth or surety bond requirements for residential mortgage loan originators and minimum requirements for recovery funds paid into by loan origina- tors. (2) Considerations In issuing regulations under paragraph (1), the Bureau shall take into account the need to provide originators adequate incentives to originate affordable and sustainable mortgage loans, as well as the need to ensure a competi- tive origination market that maximizes con- sumer access to affordable and sustainable mortgage loans. (Pub. L. 110–289, div. A, title V, § 1508, July 30, 2008, 122 Stat. 2818; Pub. L. 111–203, title X, § 1100(3), (6), July 21, 2010, 124 Stat. 2106.) Editorial Notes AMENDMENTS 2010—Pub. L. 111–203, § 1100(3), (6)(A), inserted section catchline, struck out former section catchline which read ‘‘Secretary of Housing and Urban Development backup authority to establish a loan originator licens- ing system’’, and substituted ‘‘Director’’ for ‘‘Sec- retary’’ wherever appearing in text. Subsec. (f). Pub. L. 111–203, § 1100(6)(B), added subsec. (f). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the des- ignated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees. § 5108. Backup authority to establish a nation- wide mortgage licensing and registry system If at any time the Director determines that the Nationwide Mortgage Licensing System and Registry is failing to meet the requirements and purposes of this chapter for a comprehensive li- censing, supervisory, and tracking system for loan originators, the Director shall establish and maintain such a system to carry out the purposes of this chapter and the effective reg- istration and regulation of loan originators. (Pub. L. 110–289, div. A, title V, § 1509, July 30, 2008, 122 Stat. 2819; Pub. L. 111–203, title X, § 1100(3), July 21, 2010, 124 Stat. 2106.) Editorial Notes AMENDMENTS 2010—Pub. L. 111–203 substituted ‘‘Director’’ for ‘‘Sec- retary’’ in two places. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the des- ignated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees. § 5109. Fees The Bureau, the Farm Credit Administration, and the Nationwide Mortgage Licensing System and Registry may charge reasonable fees to cover the costs of maintaining and providing ac- cess to information from the Nationwide Mort- gage Licensing System and Registry, to the ex- tent that such fees are not charged to consumers for access to such system and registry. (Pub. L. 110–289, div. A, title V, § 1510, as added Pub. L. 111–203, title X, § 1100(7), July 21, 2010, 124 Stat. 2107.) Editorial Notes PRIOR PROVISIONS A prior section 5109, Pub. L. 110–289, div. A, title V, § 1510, July 30, 2008, 122 Stat. 2819, which related to fees, was repealed by Pub. L. 111–203, title X, § 1100(7), July 21, 2010, 124 Stat. 2107. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on the designated transfer date, see section 1100H of Pub. L. 111–203, set out as an Effective Date of 2010 Amendment note under section 552a of Title 5, Government Organization and Employees. § 5110. Background checks of loan originators (a) Access to records Notwithstanding any other provision of law, in providing identification and processing func- Page 1793 TITLE 12—BANKS AND BANKING § 5112 tions, the Attorney General shall provide access to all criminal history information to the appro- priate State officials responsible for regulating State-licensed loan originators and other finan- cial service providers to the extent criminal his- tory background checks are required under the laws of the State for the licensing of such loan originators or other financial service providers. (b) Agent For the purposes of this section and in order to reduce the points of contact which the Fed- eral Bureau of Investigation may have to main- tain for purposes of subsection (a), the Con- ference of State Bank Supervisors or a wholly owned subsidiary may be used as a channeling agent of the States for requesting and distrib- uting information between the Department of Justice and the appropriate State agencies . (Pub. L. 110–289, div. A, title V, § 1511, July 30, 2008, 122 Stat. 2819; Pub. L. 114–94, div. G, title LXXXVIII, § 88002, Dec. 4, 2015, 129 Stat. 1799.) Editorial Notes AMENDMENTS 2015—Subsec. (a). Pub. L. 114–94 inserted ‘‘and other financial service providers’’ after ‘‘State-licensed loan originators’’ and ‘‘or other financial service providers’’ before period at end. § 5111. Confidentiality of information (a) System confidentiality Except as otherwise provided in this section, any requirement under Federal or State law re- garding the privacy or confidentiality of any in- formation or material provided to the Nation- wide Mortgage Licensing System and Registry or a system established by the Director under section 5108 of this title, and any privilege aris- ing under Federal or State law (including the rules of any Federal or State court) with respect to such information or material, shall continue to apply to such information or material after the information or material has been disclosed to the system. Such information and material may be shared with all State and Federal regu- latory officials with mortgage or financial serv- ices industry oversight authority without the loss of privilege or the loss of confidentiality protections provided by Federal and State laws. (b) Nonapplicability of certain requirements Information or material that is subject to a privilege or confidentiality under subsection (a) shall not be subject to— (1) disclosure under any Federal or State law governing the disclosure to the public of infor- mation held by an officer or an agency of the Federal Government or the respective State; or (2) subpoena or discovery, or admission into evidence, in any private civil action or admin- istrative process, unless with respect to any privilege held by the Nationwide Mortgage Li- censing System and Registry or the Director with respect to such information or material, the person to whom such information or mate- rial pertains waives, in whole or in part, in the discretion of such person, that privilege. (c) Coordination with other law Any State law, including any State open record law, relating to the disclosure of con- fidential supervisory information or any infor- mation or material described in subsection (a) that is inconsistent with subsection (a) shall be superseded by the requirements of such provi- sion to the extent State law provides less con- fidentiality or a weaker privilege. (d) Public access to information This section shall not apply with respect to the information or material relating to the em- ployment history of, and publicly adjudicated disciplinary and enforcement actions against, loan originators that is included in Nationwide Mortgage Licensing System and Registry for ac- cess by the public. (Pub. L. 110–289, div. A, title V, § 1512, July 30, 2008, 122 Stat. 2820; Pub. L. 111–203, title X, § 1100(3), July 21, 2010, 124 Stat. 2106; Pub. L. 114–113, div. O, title VII, § 703, Dec. 18, 2015, 129 Stat. 3025.) Editorial Notes AMENDMENTS 2015—Subsec. (a). Pub. L. 114–113 inserted ‘‘or finan- cial services’’ before ‘‘industry’’. 2010—Subsecs. (a), (b)(2). Pub. L. 111–203 substituted ‘‘Director’’ for ‘‘Secretary’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the des- ignated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees. § 5112. Liability provisions The Bureau, any State official or agency, or any organization serving as the administrator of the Nationwide Mortgage Licensing System and Registry or a system established by the Director under section 5108 of this title, or any officer or employee of any such entity, shall not be sub- ject to any civil action or proceeding for mone- tary damages by reason of the good faith action or omission of any officer or employee of any such entity, while acting within the scope of of- fice or employment, relating to the collection, furnishing, or dissemination of information con- cerning persons who— (1) have applied, are applying, or are licensed or registered through the Nationwide Mort- gage Licensing System and Registry; and (2) work in an industry with respect to which persons were licensed or registered through the Nationwide Mortgage Licensing System and Registry on May 24, 2018. (Pub. L. 110–289, div. A, title V, § 1513, as added Pub. L. 111–203, title X, § 1100(8), July 21, 2010, 124 Stat. 2107; amended Pub. L. 115–174, title I, § 106(c), May 24, 2018, 132 Stat. 1304.) Editorial Notes PRIOR PROVISIONS A prior section 5112, Pub. L. 110–289, div. A, title V, § 1513, July 30, 2008, 122 Stat. 2820, which barred liability for good faith actions or omissions by certain entities’ officers or employees, was repealed by Pub. L. 111–203, title X, § 1100(8), July 21, 2010, 124 Stat. 2107.