The Housing and Economic Recovery Act of 2008, signed into law on July 30, 2008 (Public Law 110-289) (HERA), constitutes a major new housing law that is designed to assist with the recovery and the revitalization of America`s residential housing market. The SAFE Act is a key component of HERA. The SAFE Act is designed to enhance consumer protection and reduce fraud by encouraging states to establish minimum standards for the licensing and registration of state-licensed mortgage loan originators and to establish and maintain a nationwide mortgage licensing system and registry for the residential mortgage industry.
NH adopted the SAFE Act in 2009 with HB 610 which amended RSA 397-A to comply with the Federal SAFE Model Act requirements.In December 2009, HUD Proposed Model Rulemaking and received comments until March 5, 2010.The SAFE Act contains broad definitions for licensing for ‘loan originators’ which in addition to applying to residential mortgage personnel mayalso apply to sellers taking back a residential mortgage from a buyer and to attorneys assisting clients by drafting notes and mortgages, negotiating mortgage workouts and loan modifications.
The authors consist of members of the NH Banking Department and provide attorneys an understanding of the history of the SAFE Act and the current status of the law: the NH SAFE Act, the Federal Model Act and Proposed Rule as well as pending NH legislation: SB 339 and NH Banking Department licensing procedures and resources.