Last week, the SAFE Transitional License Act (S. 1753) was introduced in the Senate with the enthusiastic support of MBA and the mortgage industry. Similar bipartisan legislation (H.R. 2948) was introduced in late June in the U.S. House of Representatives. The SAFE Transitional License Act, could have a huge impact for the mortgage industry, as mortgage loan officers (MLOs) may soon be able to transition from a traditional bank to a nonbank and keep originating new mortgage loans without having to wait for a new license.
The Federal Reserve’s Federal Open Market Committee held its July meeting on Wednesday. That’s always a good time to take a breath and look at the state of the housing market. This past meeting more so than others.
With the administration and Congress both focusing on reforming Fannie and Freddie – the GSEs – the Senate Banking Committee will hold another hearing on the topic this week, with a focus on maintaining access to the secondary mortgage market for small lenders. This is welcome news. The secondary mortgage market affects millions of American homebuyers and is the lifeblood of small, independent lenders. MBA’s plan for GSE reform ensures equal access for lenders of all sizes and business models, a point I made in my testimony before the same committee last month.