SPST-0171 - Registration of Mortgage Loan Originators (SAFE Act) - 2025 FINAL

CONTROLLED//FDIC INTERNAL ONLY

SUPPORTING STATEMENT

REGISTRATION OF MORTGAGE LOAN ORIGINATORS – SAFE ACT

(OMB Control No. 3064-0171)

INTRODUCTION

The Federal Deposit Insurance Corporation (FDIC) is requesting a three-year extension, with revisions of the information collection for its collection (3064-0171) associated with the registration of mortgage loan originators. The current clearance for the collection expires on April 30, 2025.

1. JUSTIFICATION

1. Circumstances that make the collection necessary:

The Secure and Fair Enforcement for Mortgage Licensing Act (the S.A.F.E. Act), which was enacted as Title V of the Housing and Economic Recovery Act of 2008, Pub. L. No.110-289, requires employees of certain financial institutions and their subsidiaries, who engage in the business of a mortgage loan originator (“MLO”) to register with Nationwide Mortgage Licensing System and Registry; a web-based system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage regulators jointly through the State Regulatory Registry LLC. The S.A.F.E. Act also provides that these institutions must require their employees, who act as MLOs to comply with this Act’s requirements to register and obtain a unique identifier, and must adopt and follow written policies and procedures to assure compliance with these requirements.

2. Use of Information:

The information collected is designed to improve the flow of information to and between regulators; provide accountability and tracking of MLOs, enhance consumer protections, reduce fraud in the residential mortgage loan origination process and provide consumers with easily accessible information at no charge regarding the employment history of, and publicly adjudicated disciplinary and enforcement actions against, MLOs.

3. Consideration of the use of improved information technology:

Federal registration and state licensing and registration must be completed through the Nationwide Mortgage Licensing System and Registry; a web-based system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage regulators jointly through the State Regulatory Registry LLC. The electronic form is stored in a secured, centralized repository.

4. Efforts to Identify Duplication:

The collections of information are unique and cover the institution’s particular circumstances. No duplication exists.

5. Methods used to minimize burden if the collection has a significant impact on a substantial number of small entities:

According to Call Report data as of June 30, 2024, there were 2,840 FDIC-supervised institutions.  Of these entities, 2,173 have total assets of less than $850 million therefore meeting the Small Business Administration’s definition of a “small entity.”  However, the impact on these small entities would not be significant.

6. Consequences to Less Frequent Collections:

Without this information, the FDIC would be unable to meet the requirements of the statute.

7. Special circumstances necessitating collection inconsistent with 5 CFR Part 1320.5(d)(2):

None.

8. Consultation with Persons Outside the FDIC:

A 60-day notice seeking public comment on the FDIC’s renewal of the information collection was published on January 23, 2025 (90 FR 8027). No comments were received.

9. Payment or Gift to Respondents:

Not applicable.

10. Any assurance of confidentiality:

Any information deemed to be of a confidential nature would be exempt from public disclosure in accordance with the provisions of the Freedom of Information Act (5 U.S.C. 552).

11. Justification for questions of a sensitive nature:

The information collection does not request information of a sensitive nature.

12. Estimate of Hour Burden Including Annualized Hourly Costs:

Summary of Estimated Annual Burden (OMB No. 3064-0171)
Information Collection (IC) (Obligation to Respond)	Type of Burden (Frequency of Response)	Number of Respondents	Number of Responses per Respondent	Average Time per Response (HH:MM)	Annual Burden (Hours)
1. Financial Institution Policies and Procedures for Ensuring Employee-Mortgage Loan Originator Compliance With SAFE Act Requirements – New Entrant, 12 CFR 1007.104 (Mandatory)	Recordkeeping (One Time)	2	1	20:00	40
2. Financial Institution Policies and Procedures for Ensuring Employee-Mortgage Loan Originator Compliance With SAFE Act Requirements – Ongoing, 12 CFR 1007.104 (Mandatory)	Recordkeeping (Annual)	2,783	1	01:00	2,783
3. Financial Institution Procedures to Track and Monitor Compliance with SAFE Act Compliance – New Entrant, 12 CFR 1007.104 (Mandatory)	Recordkeeping (One Time)	2	1	60:00	120
4. Financial Institution Procedures to Track and Monitor Compliance with SAFE Act Compliance – Ongoing, 12 CFR 1007.104 (Mandatory)	Recordkeeping (Annual)	2,783	1	01:00	2,783
5. Financial Institution Procedures for the Collection and Maintenance of Employee Mortgage Loan Originator's Criminal History Background Reports – New Entrant, 12 CFR 1007.104 (Mandatory)	Recordkeeping (One Time)	2	1	20:00	40
6. Financial Institution Procedures for the Collection and Maintenance of Employee Mortgage Loan Originator's Criminal History Background Reports – Ongoing, 12 CFR 1007.104 (Mandatory)	Recordkeeping (Annual)	2,783	1	01:00	2,783
7. Financial Institution Procedures for Public Disclosure of Mortgage Loan Originator's Unique Identifier – New Entrant, 12 CFR 1007.104 (Mandatory)	Disclosure (One Time)	2	1	25:00	50
8. Financial Institution Procedures for Public Disclosure of Mortgage Loan Originator's Unique Identifier – Ongoing, 12 CFR 1007.104 (Mandatory)	Disclosure (Annual)	2,783	1	01:00	2,783
9. Financial Institution Information Reporting to Registry, 12 CFR 1007.103 (Mandatory)	Reporting (On Occasion)	2,785	1	01:00	2,785
10. Mortgage Loan Originator Initial Registration Reporting and Authorization Requirement, 12 CFR 1007.103 (Mandatory)	Reporting (One Time)	6,204	1	02:00	12,408
11. Mortgage Loan Originator Registration Updates Upon Change in Circumstances, 12 CFR 1007.103 (Mandatory)	Reporting (On Occasion)	38,249	1	00:15	9,562
12. Financial Institution Procedures for the Collection of Employee Mortgage Loan Originator's Fingerprints, 12 CFR 1007.104 (Mandatory)	Recordkeeping (On Occasion)	2,785	1	04:00	11,140
13. Mortgage Loan Originator Procedures for Disclosure to Consumers of Unique Identifier, 12 CFR 1007.104 (Mandatory)	Disclosure (On Occasion)	44,453	1	01:00	44,453
14. Mortgage Loan Originator Annual Renewal Registration Reporting and Authorization Requirements, 12 CFR 1007.103 (Mandatory)	Reporting (On Occasion)	38,249	1	02:00	76,498
Total Annual Burden (Hours):					168,228
Source: FDIC.

Summary of Hourly Burden Cost Estimate (OMB No. 3064-0171)
Information Collection (IC) (Obligation to Respond)	Hourly Weight (%)	Percentage Shares of Hours Spent by and Hourly Compensation Rates for each Occupation Group (by Collection)						Estimated Hourly Compensation Rate
		Exec. & Mgr. ($146.13)	Lawyer ($182.07)	Compl. Ofc. ($77.07)	IT ($110.91)	Fin. Anlst. ($100.28)	Clerical ($39.39)
1. Financial Institution Policies and Procedures for Ensuring Employee-Mortgage Loan Originator Compliance With SAFE Act Requirements – New Entrant, 12 CFR 1007.104 (Mandatory)	0.02	10	0	80	0	0	10	$80.21
2. Financial Institution Policies and Procedures for Ensuring Employee-Mortgage Loan Originator Compliance With SAFE Act Requirements – Ongoing, 12 CFR 1007.104 (Mandatory)	1.65	10	0	80	0	0	10	$80.21
3. Financial Institution Procedures to Track and Monitor Compliance with SAFE Act Compliance – New Entrant, 12 CFR 1007.104 (Mandatory)	0.07	0	0	70	0	0	30	$65.77
4. Financial Institution Procedures to Track and Monitor Compliance with SAFE Act Compliance – Ongoing, 12 CFR 1007.104 (Mandatory)	1.65	0	0	70	0	0	30	$65.77
5. Financial Institution Procedures for the Collection and Maintenance of Employee Mortgage Loan Originator's Criminal History Background Reports – New Entrant, 12 CFR 1007.104 (Mandatory)	0.02	0	0	50	0	0	50	$58.23
6. Financial Institution Procedures for the Collection and Maintenance of Employee Mortgage Loan Originator's Criminal History Background Reports – Ongoing, 12 CFR 1007.104 (Mandatory)	1.65	0	0	50	0	0	50	$58.23
7. Financial Institution Procedures for Public Disclosure of Mortgage Loan Originator's Unique Identifier – New Entrant, 12 CFR 1007.104 (Mandatory)	0.03	0	0	40	0	0	60	$54.46
8. Financial Institution Procedures for Public Disclosure of Mortgage Loan Originator's Unique Identifier – Ongoing, 12 CFR 1007.104 (Mandatory)	1.65	0	0	40	0	0	60	$54.46
9. Financial Institution Information Reporting to Registry, 12 CFR 1007.103 (Mandatory)	1.66	0	0	10	0	0	90	$43.16
10. Mortgage Loan Originator Initial Registration Reporting and Authorization Requirement, 12 CFR 1007.103 (Mandatory)	7.38	0	0	0	0	50	50	$69.84
11. Mortgage Loan Originator Registration Updates Upon Change in Circumstances, 12 CFR 1007.103 (Mandatory)	5.68	0	0	0	0	50	50	$69.84
12. Financial Institution Procedures for the Collection of Employee Mortgage Loan Originator's Fingerprints, 12 CFR 1007.104 (Mandatory)	6.62	0	0	0	0	80	20	$88.10
13. Mortgage Loan Originator Procedures for Disclosure to Consumers of Unique Identifier, 12 CFR 1007.104 (Mandatory)	26.42	0	0	0	0	100	0	$100.28
14. Mortgage Loan Originator Annual Renewal Registration Reporting and Authorization Requirements, 12 CFR 1007.103 (Mandatory)	45.47	0	0	0	0	50	50	$69.84
Weighted Average Hourly Compensation Rate:								$78.30
Source: Bureau of Labor Statistics.

Total Estimated Cost Burden (OMB No. 3064-0171)
Information Collection Request	Annual Burden (Hours)	Weighted Average Hourly Compensation Rate	Annual Respondent Cost
Registration of Mortgage Loan Originators	168,228	$78.30	$13,172,252
Total Annual Respondent Cost:			$13,172,252
Source: FDIC.

13. Capital, Start-up, Operating, and Maintenance Estimate of Start-up Costs to Respondents:

None.

14. Estimates of annualized cost to the federal government:

None.

14. Analysis of change in burden:

There is no change in the method or substance of the collection. The overall decrease in burden hours (from 174,549 hours to 168,228 hours) is due to the decrease in the estimated number of respondents.

14. Information regarding collections whose results are planned to be published for statistical use:

The information contained in this collection is not published.

14. Display of Expiration Date:

This information collection is contained in a regulation.

14. Exceptions to certification:

None.

2. STATISTICAL METHODS

Statistical methods are not employed in this collection.

File Type	application/vnd.openxmlformats-officedocument.wordprocessingml.document
Author	Gofney, Rashida K.
File Modified	0000-00-00
File Created	2025-05-19