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 June 30, 2022.
JUSTIFICATION
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. The FDIC regulation implementing the S.A.F.E. Act was originally codified at 12 CFR Part 365. However, in 2011, pursuant to the Dodd-Frank Act, Part 365 was superseded by 12 CFR Part 1007 (the Bureau of Consumer Financial Protection’s regulation).
Use of information collected:
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.
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.
Efforts to identify duplication:
The collections of information are unique and cover the institution’s particular circumstances. No duplication exists.
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 September 30, 2021, there were 3,177 FDIC-supervised institutions. Of these entities, 2,250 have total assets of less than $600 million therefore meeting the Small Business Administration’s definition of a “small entity.” However, the impact on these small entities would not be significant.
Consequences to the Federal program if the collection were conducted less frequently:
Without this information, the FDIC would be unable to meet the requirements of the statute.
Special circumstances necessitating collection inconsistent with 5 CFR Part 1320.5(d)(2):
None. The information is collected in a manner consistent with 5 CFR Part 1320.5(d)(2).
Efforts to consult with persons outside the agency:
A 60-day notice seeking public comment on the FDIC’s renewal of the information collection was published on January 13, 2022 (87 FR 2155). No comments were received.
Payment or gift to respondents:
Not applicable.
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).
Justification for questions of a sensitive nature:
The information collection does not request information of a sensitive nature.
Summary of Annual Burden (OMB 3064-0171)
Information Collection Description |
Type of Burden |
Frequency of Response |
Estimated Number of Respondents |
Estimated Number of Responses per Respondent |
Estimated Time per Response (Hours) |
Estimated Annual Burden (Hours) |
|
Recordkeeping |
One-Time |
7 |
1 |
20 |
140 |
|
Recordkeeping |
Annual |
3,091 |
1 |
1 |
|
|
Recordkeeping |
One-Time |
7 |
1 |
60 |
420 |
|
Recordkeeping |
Annual |
3,091 |
1 |
1 |
3,091 |
|
Recordkeeping |
One-Time |
7 |
1 |
20 |
|
|
Recordkeeping |
Annual |
3,091 |
1 |
1 |
3,091 |
|
Third Party Disclosure |
One-Time |
7 |
1 |
25 |
175 |
|
Third Party Disclosure |
Annual |
3,091 |
1 |
1 |
3,091 |
|
Reporting |
On Occasion |
3,098 |
1 |
1 |
3,098 |
|
Reporting |
One-Time |
5,257 |
1 |
2 |
10,514 |
|
Reporting |
On Occasion |
40,015 |
1 |
.25 |
10,004 |
|
Recordkeeping |
On Occasion |
3,098 |
1 |
4 |
12,392 |
|
Third Party Disclosure |
On Occasion |
45,272 |
1 |
1 |
45,272 |
|
Reporting |
On Occasion |
40,015 |
1 |
2 |
80,030 |
Total Annual Burden |
||||||
|
Category of Personnel Responsible for Complying with the PRA Burden |
|
|||||
|
Executives & Managers1 |
Lawyers2 |
Compliance Officer3 |
IT4 |
Financial Analysts5 |
Clerical6 |
|
Adjusted Wage |
$131.09 |
$156.79 |
$69.38 |
$96.71 |
$84.43 |
$35.62 |
|
|
Percentage of Category Responsible for Complying with the PRA Burden |
Total Estimated Weighted Average Hourly Compensation Rate |
|||||
|
10% |
0% |
80% |
0% |
0% |
10% |
$72.18 |
|
10% |
0% |
80% |
0% |
0% |
10% |
$72.18 |
|
0% |
0% |
70% |
0% |
0% |
30% |
$59.25 |
|
0% |
0% |
70% |
0% |
0% |
30% |
$59.25 |
|
0% |
0% |
50% |
0% |
0% |
50% |
$52.50 |
|
0% |
0% |
50% |
0% |
0% |
50% |
$52.50 |
|
0% |
0% |
40% |
0% |
0% |
60% |
$49.12 |
|
0% |
0% |
40% |
0% |
0% |
60% |
$49.12 |
|
0% |
0% |
10% |
0% |
0% |
90% |
$39.00 |
|
0% |
0% |
0% |
0% |
50% |
50% |
$60.03 |
|
0% |
0% |
0% |
0% |
50% |
50% |
$60.03 |
|
0% |
0% |
0% |
0% |
80% |
20% |
$74.67 |
|
0% |
0% |
0% |
0% |
100% |
0% |
$84.43 |
|
0% |
0% |
0% |
0% |
50% |
50% |
$60.03 |
Line Item |
Estimated Annual Burden (Hours) |
Total Estimated Weighted Average Hourly Compensation Rate |
Total Estimated Cost Burden |
|
140 |
$72.18 |
$10,105.20 |
|
3,091 |
$72.18 |
$223,108.38 |
|
420 |
$59.25 |
$24,885.00 |
|
3,091 |
$59.25 |
$183,141.75 |
|
140 |
$52.50 |
$7,350.00 |
|
3,091 |
$52.50 |
$162,277.50 |
|
175 |
$49.12 |
$8,596.00 |
|
3,091 |
$49.12 |
$151,829.92 |
|
3,098 |
$39.00 |
$120,822.00 |
|
10,514 |
$60.03 |
$631,155.42 |
|
10,004 |
$60.03 |
$600,540.12 |
|
12,392 |
$74.67 |
$925,310.64 |
|
45,272 |
$84.43 |
$3,822,314.96 |
|
80,030 |
$60.03 |
$4,804,200.90 |
Total Burden Estimate |
$11,675,637.79 |
||
Estimate of start-up cost to respondents:
None.
Estimates of annualized cost to the federal government:
None.
Analysis of change in burden:
The FDIC has adjusted its burden estimate by segregating certain recordkeeping and third-party disclosure requirements (items 1 through 8 in the burden table above) into “implementation” burden for a limited number of “new entrants” that will incur a higher one-time burden to set up or implement the requirements; and a lower “ongoing” burden for the majority or respondents that have already implemented the requirements and are only making necessqry revisions. As a result, the estimated annual burden has decreased by 401, 104 hours from 575,653 hours to 174,549 hours.The overall decrease is attenuated by increases in estimated time per response to three line items.
Information regarding collections whose results are planned to be published for statistical use:
The information contained in this collection is not published.
Exceptions to expiration date display:
This information collection is contained in a regulation.
Exceptions to certification:
None.
STATISTICAL METHODS
Statistical methods are not employed in this collection.
1 Occupation (SOC Code): Management Occupations (110000)
2 Legal Occupations (230000)
3 Compliance Officers (131040)
4 Computer and Mathematical Occupations (150000)
5 Financial and Investment Analysts, Financial Risk Specialists, and Financial Specialists, All Other (132098)
6 Office and Administrative Support Occupations (430000)
| File Type | application/vnd.openxmlformats-officedocument.wordprocessingml.document |
| File Modified | 0000-00-00 |
| File Created | 2022-03-22 |