1. 1 NH/VT 2011 JOINT COMPLIANCE CONFERENCE Safe Act Update for Depositories Ben Niles, Risk Manager bniles@merrimackmortgage.com 603-606-3272 603-305-0590 (C)

2. 2 SAFE Act The content of this presentation is for information purposes only. I am not an attorney and am not providing legal advice. It is recommended that you also seek guidance from your legal counsel for compliance issues and questions.

3. 3 SAFE ACT- Depositories Requires OCC, FRB, FDIC, OTS, FCA & NCUA to develop a system for “Registering MLO’s” Dodd-Frank passed 7/21/10: CFPB Depository Regulations issued 7/28/10 implementing SAFE ACT NMLS modified to accept “registrations”

4. 4 Depository Regulations Published Regs published in Fed Register 7/28/10 12 CFR Part 34 208, 211, 365, 563,610, 741, & 761 MLO Registration Required via NMLS  Deadline of 7/29/11

5. 5 MLO Defined Loan Originator:  takes a residential mortgage loan application, or  assists a consumer in obtaining or applying to obtain a residential mortgage loan, or  offers or negotiates terms for a residential mortgage loan, or  advises on loan terms, preparing loan packages, or collecting consumer information,  and is paid direct or indirect compensation or gain

6. 6 Who is Not A Mortgage Loan Officer? Management/Administrative Exemption Loan Processor Underwriter Branch Support Staff? Fulfillment Dept Staff (think Mortgagebot)? Servicing Staff- Loan Mods? Exemption: max 5 loans in previous 12 months

7. 7 Is a Branch Manager an LO? Producing Branch Manager VS Non-Producing Branch Manager

8. 8 NMLS Registration FBI Background Check- Fingerprints criminal background check, i.e. - civil & felony convictions Personal History & Experience 10 Yr employment history- financial services Financial Responsibility Review- credit report

9. 9 License Issuance- Minimum Standards LO license never revoked Never convicted, pled guilty, or nolo contendere to a felony Demonstrated financial responsibility, character & fitness…

10. 10 What is not Required 20 hours of pre-licensing education National & state exams 8 hours of continuing education annually

11. 11 NMLS Registration “How To” Google “NMLS Resource Center” Click on “Getting Started- Company or Institution Click on “Federal Registration” 12 Step Process Numerous links to Guides, FAQ’s, Forms, Workflows, & Charts HR may do most of the work MLO completes MU4R- Personal Information MLO submits fingerprints

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13. 13 MLO/ NMLO Registration Questions?? Ben Niles, Risk Manager Merrimack Mortgage Company bniles@merrimackmortgage.com 603-606-3272 603-305-0590 (C)