12 Usc 5101

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Statutory Notes and Related Subsidiaries

CHAPTER 51—SECURE AND FAIR
ENFORCEMENT FOR MORTGAGE LICENSING
Sec.

5101.
5102.
5103.
5104.
5105.
5106.
5107.
5108.
5109.
5110.
5111.
5112.
5113.
5114.
5115.
5116.
5117.

Purposes and methods for establishing a
mortgage licensing system and registry.
Definitions.
License or registration required.
State license and registration application and
issuance.
Standards for State license renewal.
System of registration administration by
Federal agencies.
Bureau of Consumer Financial Protection
backup authority to establish loan originator licensing system.
Backup authority to establish a nationwide
mortgage licensing and registry system.
Fees.
Background checks of loan originators.
Confidentiality of information.
Liability provisions.
Enforcement by the Bureau.
State examination authority.
Reports and recommendations to Congress.
Study and reports on defaults and foreclosures.
Employment transition of loan originators.

§ 5101. Purposes and methods for establishing a
mortgage licensing system and registry
In order to increase uniformity, reduce regulatory burden, enhance consumer protection,
and reduce fraud, the States, through the Conference of State Bank Supervisors and the
American Association of Residential Mortgage
Regulators, are hereby encouraged to establish a
Nationwide Mortgage Licensing System and
Registry for the residential mortgage industry
that accomplishes all of the following objectives:
(1) Provides uniform license applications and
reporting requirements for State-licensed loan
originators.
(2) Provides a comprehensive licensing and
supervisory database.
(3) Aggregates and improves the flow of information to and between regulators.
(4) Provides increased accountability and
tracking of loan originators.
(5) Streamlines the licensing process and reduces the regulatory burden.
(6) Enhances consumer protections and supports anti-fraud measures.
(7) Provides consumers with easily accessible information, offered at no charge, utilizing electronic media, including the Internet, regarding the employment history of, and
publicly adjudicated disciplinary and enforcement actions against, loan originators.
(8) Establishes a means by which residential
mortgage loan originators would, to the greatest extent possible, be required to act in the
best interests of the consumer.
(9) Facilitates responsible behavior in the
subprime mortgage market place and provides
comprehensive training and examination requirements related to subprime mortgage
lending.
(10) Facilitates the collection and disbursement of consumer complaints on behalf of
State and Federal mortgage regulators.
(Pub. L. 110–289, div. A, title V, § 1502, July 30,
2008, 122 Stat. 2810.)

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SHORT TITLE OF 2015 AMENDMENT
Pub. L. 114–94, div. G, title LXXXVIII, § 88001, Dec. 4,
2015, 129 Stat. 1799, provided that: ‘‘This title [amending
section 5110 of this title] may be cited as the ‘State Licensing Efficiency Act of 2015’.’’
SHORT TITLE
Pub. L. 110–289, div. A, title V, § 1501, July 30, 2008, 122
Stat. 2810, provided that: ‘‘This title [enacting this
chapter] may be cited as the ‘Secure and Fair Enforcement for Mortgage Licensing Act of 2008’ or ‘S.A.F.E.
Mortgage Licensing Act of 2008’.’’

§ 5102. Definitions
For purposes of this chapter, the following
definitions shall apply:
(1) Bureau
The term ‘‘Bureau’’ means the Bureau of
Consumer Financial Protection.
(2) Federal banking agency
The term ‘‘Federal banking agency’’ means
the Board of Governors of the Federal Reserve
System, the Office of the Comptroller of the
Currency, the National Credit Union Administration, and the Federal Deposit Insurance
Corporation.
(3) Depository institution
The term ‘‘depository institution’’ has the
same meaning as in section 1813 of this title,
and includes any credit union.
(4) Loan originator
(A) In general
The term ‘‘loan originator’’—
(i) means an individual who—
(I) takes a residential mortgage loan
application; and
(II) offers or negotiates terms of a residential mortgage loan for compensation
or gain;
(ii) does not include any individual who
is not otherwise described in clause (i) and
who performs purely administrative or
clerical tasks on behalf of a person who is
described in any such clause;
(iii) does not include a person or entity
that only performs real estate brokerage
activities and is licensed or registered in
accordance with applicable State law, unless the person or entity is compensated by
a lender, a mortgage broker, or other loan
originator or by any agent of such lender,
mortgage broker, or other loan originator;
and
(iv) does not include a person or entity
solely involved in extensions of credit relating to timeshare plans, as that term is
defined in section 101(53D) of title 11.
(B) Other definitions relating to loan originator
For purposes of this subsection, an individual ‘‘assists a consumer in obtaining or
applying to obtain a residential mortgage
loan’’ by, among other things, advising on
loan terms (including rates, fees, other
costs), preparing loan packages, or collecting information on behalf of the con-

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§ 5102

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sumer with regard to a residential mortgage
loan.
(C) Administrative or clerical tasks
The term ‘‘administrative or clerical
tasks’’ means the receipt, collection, and
distribution of information common for the
processing or underwriting of a loan in the
mortgage industry and communication with
a consumer to obtain information necessary
for the processing or underwriting of a residential mortgage loan.
(D) Real estate brokerage activity defined
The term ‘‘real estate brokerage activity’’
means any activity that involves offering or
providing real estate brokerage services to
the public, including—
(i) acting as a real estate agent or real
estate broker for a buyer, seller, lessor, or
lessee of real property;
(ii) bringing together parties interested
in the sale, purchase, lease, rental, or exchange of real property;
(iii) negotiating, on behalf of any party,
any portion of a contract relating to the
sale, purchase, lease, rental, or exchange
of real property (other than in connection
with providing financing with respect to
any such transaction);
(iv) engaging in any activity for which a
person engaged in the activity is required
to be registered or licensed as a real estate
agent or real estate broker under any applicable law; and
(v) offering to engage in any activity, or
act in any capacity, described in clause (i),
(ii), (iii), or (iv).
(5) Loan processor or underwriter
(A) In general
The term ‘‘loan processor or underwriter’’
means an individual who performs clerical
or support duties at the direction of and subject to the supervision and instruction of—
(i) a State-licensed loan originator; or
(ii) a registered loan originator.
(B) Clerical or support duties
For purposes of subparagraph (A), the term
‘‘clerical or support duties’’ may include—
(i) the receipt, collection, distribution,
and analysis of information common for
the processing or underwriting of a residential mortgage loan; and
(ii) communicating with a consumer to
obtain the information necessary for the
processing or underwriting of a loan, to
the extent that such communication does
not include offering or negotiating loan
rates or terms, or counseling consumers
about residential mortgage loan rates or
terms.
(6) Nationwide mortgage licensing system and
registry
The term ‘‘Nationwide Mortgage Licensing
System and Registry’’ means a mortgage licensing system developed and maintained by
the Conference of State Bank Supervisors and
the American Association of Residential Mortgage Regulators for the State licensing and

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registration of State-licensed loan originators
and the registration of registered loan originators or any system established by the Director
under section 5108 of this title.
(7) Nontraditional mortgage product
The term ‘‘nontraditional mortgage product’’ means any mortgage product other than
a 30-year fixed rate mortgage.
(8) Registered loan originator
The term ‘‘registered loan originator’’
means any individual who—
(A) meets the definition of loan originator
and is an employee of—
(i) a depository institution;
(ii) a subsidiary that is—
(I) owned and controlled by a depository institution; and
(II) regulated by a Federal banking
agency; or
(iii) an institution regulated by the
Farm Credit Administration; and
(B) is registered with, and maintains a
unique identifier through, the Nationwide
Mortgage Licensing System and Registry.
(9) Residential mortgage loan
The term ‘‘residential mortgage loan’’
means any loan primarily for personal, family,
or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling (as defined in section 1602(v) 1 of title 15) or residential real estate upon which is constructed or
intended to be constructed a dwelling (as so
defined).
(10) Director
The term ‘‘Director’’ means the Director of
the Bureau of Consumer Financial Protection.
(11) State
The term ‘‘State’’ means any State of the
United States, the District of Columbia, any
territory of the United States, Puerto Rico,
Guam, American Samoa, the Trust Territory
of the Pacific Islands, the Virgin Islands, and
the Northern Mariana Islands.
(12) State-licensed loan originator
The term ‘‘State-licensed loan originator’’
means any individual who—
(A) is a loan originator;
(B) is not an employee of—
(i) a depository institution;
(ii) a subsidiary that is—
(I) owned and controlled by a depository institution; and
(II) regulated by a Federal banking
agency; or
(iii) an institution regulated by the
Farm Credit Administration; and
(C) is licensed by a State or by the Director under section 5107 of this title and registered as a loan originator with, and maintains a unique identifier through, the Nationwide Mortgage Licensing System and
Registry.
1 See

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(13) Unique identifier
(A) In general
The term ‘‘unique identifier’’ means a
number or other identifier that—
(i) permanently identifies a loan originator;
(ii) is assigned by protocols established
by the Nationwide Mortgage Licensing
System and Registry and the Bureau to facilitate electronic tracking of loan originators and uniform identification of, and
public access to, the employment history
of and the publicly adjudicated disciplinary and enforcement actions against loan
originators; and
(iii) shall not be used for purposes other
than those set forth under this chapter.
(B) Responsibility of States
To the greatest extent possible and to accomplish the purpose of this chapter, States
shall use unique identifiers in lieu of social
security numbers.
(Pub. L. 110–289, div. A, title V, § 1503, July 30,
2008, 122 Stat. 2811; Pub. L. 111–203, title X,
§ 1100(2)–(4), July 21, 2010, 124 Stat. 2106.)
Editorial Notes
REFERENCES IN TEXT
Section 1602(v) of title 15, referred to in par. (9), was
redesignated section 1602(w) of title 15 by Pub. L.
111–203, title X, § 1100A(1)(A), July 21, 2010, 124 Stat. 2107.
AMENDMENTS
2010—Pub. L. 111–203, § 1100(4)(A), redesignated pars.
(2) to (12) as (3) to (13), respectively.
Par. (1). Pub. L. 111–203, § 1100(4)(B), added par. (1) and
struck out former par. (1). Prior to amendment, text
read as follows: ‘‘The term ‘Federal banking agencies’
means the Board of Governors of the Federal Reserve
System, the Comptroller of the Currency, the Director
of the Office of Thrift Supervision, the National Credit
Union Administration, and the Federal Deposit Insurance Corporation.’’
Par. (2). Pub. L. 111–203, § 1100(4)(B), added par. (2).
Former par. (2) redesignated (3).
Par. (5). Pub. L. 111–203, § 1100(3), substituted ‘‘Director’’ for ‘‘Secretary’’.
Par. (10). Pub. L. 111–203, § 1100(4)(C), added par. (10)
and struck out former par. (10). Prior to amendment,
text read as follows: ‘‘The term ‘Secretary’ means the
Secretary of Housing and Urban Development.’’
Par. (11)(C). Pub. L. 111–203, § 1100(3), substituted ‘‘Director’’ for ‘‘Secretary’’.
Par. (12)(A)(ii). Pub. L. 111–203, § 1100(2), substituted
‘‘Bureau’’ for ‘‘Federal banking agencies’’.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2010 AMENDMENT
Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L.
111–203, set out as a note under section 552a of Title 5,
Government Organization and Employees.
TERMINATION OF TRUST TERRITORY OF THE PACIFIC
ISLANDS
For termination of Trust Territory of the Pacific Islands, see note set out preceding section 1681 of Title
48, Territories and Insular Possessions.

§ 5103. License or registration required
(a) In general
Subject to the existence of a licensing or registration regime, as the case may be, an indi-

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§ 5104

vidual may not engage in the business of a loan
originator without first—
(1) obtaining, and maintaining annually—
(A) a registration as a registered loan
originator; or
(B) a license and registration as a State-licensed loan originator; and
(2) obtaining a unique identifier.
(b) Loan processors and underwriters
(1) Supervised loan processors and underwriters
A loan processor or underwriter who does
not represent to the public, through advertising or other means of communicating or
providing information (including the use of
business cards, stationery, brochures, signs,
rate lists, or other promotional items), that
such individual can or will perform any of the
activities of a loan originator shall not be required to be a State-licensed loan originator.
(2) Independent contractors
An independent contractor may not engage
in residential mortgage loan origination activities as a loan processor or underwriter unless such independent contractor is a State-licensed loan originator.
(Pub. L. 110–289, div. A, title V, § 1504, July 30,
2008, 122 Stat. 2814.)
§ 5104. State license and registration application
and issuance
(a) Background checks
In connection with an application to any State
for licensing and registration as a State-licensed
loan originator, the applicant shall, at a minimum, furnish to the Nationwide Mortgage Licensing System and Registry information concerning the applicant’s identity, including—
(1) fingerprints for submission to the Federal
Bureau of Investigation, and any governmental agency or entity authorized to receive
such information for a State and national
criminal history background check; and
(2) personal history and experience, including authorization for the System to obtain—
(A) an independent credit report obtained
from a consumer reporting agency described
in section 1681a(p) of title 15; and
(B) information related to any administrative, civil or criminal findings by any governmental jurisdiction.
(b) Issuance of license
The minimum standards for licensing and registration as a State-licensed loan originator
shall include the following:
(1) The applicant has never had a loan originator license revoked in any governmental jurisdiction.
(2) The applicant has not been convicted of,
or pled guilty or nolo contendere to, a felony
in a domestic, foreign, or military court—
(A) during the 7-year period preceding the
date of the application for licensing and registration; or
(B) at any time preceding such date of application, if such felony involved an act of
fraud, dishonesty, or a breach of trust, or
money laundering.

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(3) The applicant has demonstrated financial
responsibility, character, and general fitness
such as to command the confidence of the
community and to warrant a determination
that the loan originator will operate honestly,
fairly, and efficiently within the purposes of
this chapter.
(4) The applicant has completed the pre-licensing education requirement described in
subsection (c).
(5) The applicant has passed a written test
that meets the test requirement described in
subsection (d).
(6) The applicant has met either a net worth
or surety bond requirement, or paid into a
State fund, as required by the State pursuant
to section 5107(d)(6) of this title.
(c) Pre-licensing education of loan originators
(1) Minimum educational requirements
In order to meet the pre-licensing education
requirement referred to in subsection (b)(4), a
person shall complete at least 20 hours of education approved in accordance with paragraph
(2), which shall include at least—
(A) 3 hours of Federal law and regulations;
(B) 3 hours of ethics, which shall include
instruction on fraud, consumer protection,
and fair lending issues; and
(C) 2 hours of training related to lending
standards for the nontraditional mortgage
product marketplace.
(2) Approved educational courses
For purposes of paragraph (1), pre-licensing
education courses shall be reviewed, and approved by the Nationwide Mortgage Licensing
System and Registry.
(3) Limitation and standards
(A) Limitation
To maintain the independence of the approval process, the Nationwide Mortgage Licensing System and Registry shall not directly or indirectly offer pre-licensure educational courses for loan originators.
(B) Standards
In approving courses under this section,
the Nationwide Mortgage Licensing System
and Registry shall apply reasonable standards in the review and approval of courses.
(d) Testing of loan originators
(1) In general
In order to meet the written test requirement referred to in subsection (b)(5), an individual shall pass, in accordance with the
standards established under this subsection, a
qualified written test developed by the Nationwide Mortgage Licensing System and Registry
and administered by an approved test provider.
(2) Qualified test
A written test shall not be treated as a
qualified written test for purposes of paragraph (1) unless the test adequately measures
the applicant’s knowledge and comprehension
in appropriate subject areas, including—
(A) ethics;
(B) Federal law and regulation pertaining
to mortgage origination;

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(C) State law and regulation pertaining to
mortgage origination;
(D) Federal and State law and regulation,
including instruction on fraud, consumer
protection, the nontraditional mortgage
marketplace, and fair lending issues.
(3) Minimum competence
(A) Passing score
An individual shall not be considered to
have passed a qualified written test unless
the individual achieves a test score of not
less than 75 percent correct answers to questions.
(B) Initial retests
An individual may retake a test 3 consecutive times with each consecutive taking occurring at least 30 days after the preceding
test.
(C) Subsequent retests
After failing 3 consecutive tests, an individual shall wait at least 6 months before
taking the test again.
(D) Retest after lapse of license
A State-licensed loan originator who fails
to maintain a valid license for a period of 5
years or longer shall retake the test, not
taking into account any time during which
such individual is a registered loan originator.
(e) Mortgage call reports
Each mortgage licensee shall submit to the
Nationwide Mortgage Licensing System and
Registry reports of condition, which shall be in
such form and shall contain such information as
the Nationwide Mortgage Licensing System and
Registry may require.
(Pub. L. 110–289, div. A, title V, § 1505, July 30,
2008, 122 Stat. 2814.)
§ 5105. Standards for State license renewal
(a) In general
The minimum standards for license renewal
for State-licensed loan originators shall include
the following:
(1) The loan originator continues to meet
the minimum standards for license issuance.
(2) The loan originator has satisfied the annual continuing education requirements described in subsection (b).
(b) Continuing education for State-licensed loan
originators
(1) In general
In order to meet the annual continuing education requirements referred to in subsection
(a)(2), a State-licensed loan originator shall
complete at least 8 hours of education approved in accordance with paragraph (2),
which shall include at least—
(A) 3 hours of Federal law and regulations;
(B) 2 hours of ethics, which shall include
instruction on fraud, consumer protection,
and fair lending issues; and
(C) 2 hours of training related to lending
standards for the nontraditional mortgage
product marketplace.

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(2) Approved educational courses
For purposes of paragraph (1), continuing
education courses shall be reviewed, and approved by the Nationwide Mortgage Licensing
System and Registry.
(3) Calculation of continuing education credits
A State-licensed loan originator—
(A) may only receive credit for a continuing education course in the year in
which the course is taken; and
(B) may not take the same approved
course in the same or successive years to
meet the annual requirements for continuing education.
(4) Instructor credit
A State-licensed loan originator who is approved as an instructor of an approved continuing education course may receive credit
for the originator’s own annual continuing
education requirement at the rate of 2 hours
credit for every 1 hour taught.
(5) Limitation and standards
(A) Limitation
To maintain the independence of the approval process, the Nationwide Mortgage Licensing System and Registry shall not directly or indirectly offer any continuing
education courses for loan originators.
(B) Standards
In approving courses under this section,
the Nationwide Mortgage Licensing System
and Registry shall apply reasonable standards in the review and approval of courses.
(Pub. L. 110–289, div. A, title V, § 1506, July 30,
2008, 122 Stat. 2816.)
§ 5106. System of registration administration by
Federal agencies
(a) Development
(1) In general
The Bureau shall develop and maintain a
system for registering employees of a depository institution, employees of a subsidiary
that is owned and controlled by a depository
institution and regulated by a Federal banking agency, or employees of an institution regulated by the Farm Credit Administration, as
registered loan originators with the Nationwide Mortgage Licensing System and Registry. The system shall be implemented before
the end of the 1-year period beginning on July
21, 2010.
(2) Registration requirements
In connection with the registration of any
loan originator under this subsection, the Bureau shall, at a minimum, furnish or cause to
be furnished to the Nationwide Mortgage Licensing System and Registry information concerning the identity of the employee, including—
(A) fingerprints for submission to the Federal Bureau of Investigation, and any governmental agency or entity authorized to receive such information for a State and national criminal history background check;
and

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(B) personal history and experience, including authorization for the Nationwide
Mortgage Licensing System and Registry to
obtain information related to any administrative, civil or criminal findings by any
governmental jurisdiction.
(b) Coordination
(1) Unique identifier
The Bureau,1 and the Bureau of Consumer
Financial Protection shall coordinate with the
Nationwide Mortgage Licensing System and
Registry to establish protocols for assigning a
unique identifier to each registered loan originator that will facilitate electronic tracking
and uniform identification of, and public access to, the employment history of and publicly adjudicated disciplinary and enforcement
actions against loan originators.
(2) Nationwide Mortgage Licensing System and
Registry development
To facilitate the transfer of information required by subsection (a)(2), the Nationwide
Mortgage Licensing System and Registry shall
coordinate with the Bureau,1 and the Bureau
of Consumer Financial Protection concerning
the development and operation, by such System and Registry, of the registration
functionality and data requirements for loan
originators.
(c) Consideration of factors and procedures
In establishing the registration procedures
under subsection (a) and the protocols for assigning a unique identifier to a registered loan
originator, the Bureau shall make such de minimis exceptions as may be appropriate to paragraphs (1)(A) and (2) of section 5103(a) of this
title, shall make reasonable efforts to utilize existing information to minimize the burden of
registering loan originators, and shall consider
methods for automating the process to the
greatest extent practicable consistent with the
purposes of this chapter.
(Pub. L. 110–289, div. A, title V, § 1507, July 30,
2008, 122 Stat. 2817; Pub. L. 111–203, title X,
§ 1100(2), (5), July 21, 2010, 124 Stat. 2106.)
Editorial Notes
AMENDMENTS
2010—Subsec. (a)(1). Pub. L. 111–203, § 1100(5)(A)(i),
added par. (1) and struck out former par. (1). Prior to
amendment, text read as follows: ‘‘The Federal banking
agencies shall jointly, through the Federal Financial
Institutions Examination Council, and together with
the Farm Credit Administration, develop and maintain
a system for registering employees of a depository institution, employees of a subsidiary that is owned and
controlled by a depository institution and regulated by
a Federal banking agency, or employees of an institution regulated by the Farm Credit Administration, as
registered loan originators with the Nationwide Mortgage Licensing System and Registry. The system shall
be implemented before the end of the 1-year period beginning on July 30, 2008.’’
Subsec. (a)(2). Pub. L. 111–203, § 1100(5)(A)(ii), in introductory provisions, substituted ‘‘Bureau’’ for ‘‘appropriate Federal banking agency and the Farm Credit Administration’’ and ‘‘identity of the employee’’ for
‘‘employees’s identity’’.
1 So

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Subsec. (b). Pub. L. 111–203, § 1100(5)(B), which directed substitution of ‘‘and the Bureau of Consumer Financial Protection’’ for ‘‘through the Financial Institutions Examination Council, and the Farm Credit Administration’’, was executed in both places those words
appeared, to reflect the probable intent of Congress.
Subsecs. (b)(1), (2), (c). Pub. L. 111–203, § 1100(2), substituted ‘‘Bureau’’ for ‘‘Federal banking agencies’’.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2010 AMENDMENT
Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L.
111–203, set out as a note under section 552a of Title 5,
Government Organization and Employees.

§ 5107. Bureau of Consumer Financial Protection
backup authority to establish loan originator
licensing system
(a) Backup licensing system
If, by the end of the 1-year period, or the 2year period in the case of a State whose legislature meets only biennially, beginning on July
30, 2008, or at any time thereafter, the Director
determines that a State does not have in place
by law or regulation a system for licensing and
registering loan originators that meets the requirements of sections 5104 and 5105 of this title
and subsection (d) of this section, or does not
participate in the Nationwide Mortgage Licensing System and Registry, the Director shall provide for the establishment and maintenance of a
system for the licensing and registration by the
Director of loan originators operating in such
State as State-licensed loan originators.
(b) Licensing and registration requirements
The system established by the Director under
subsection (a) for any State shall meet the requirements of sections 5104 and 5105 of this title
for State-licensed loan originators.
(c) Unique identifier
The Director shall coordinate with the Nationwide Mortgage Licensing System and Registry
to establish protocols for assigning a unique
identifier to each loan originator licensed by the
Director as a State-licensed loan originator that
will facilitate electronic tracking and uniform
identification of, and public access to, the employment history of and the publicly adjudicated disciplinary and enforcement actions
against loan originators.
(d) State licensing law requirements
For purposes of this section, the law in effect
in a State meets the requirements of this subsection if the Director determines the law satisfies the following minimum requirements:
(1) A State loan originator supervisory authority is maintained to provide effective supervision and enforcement of such law, including the suspension, termination, or nonrenewal of a license for a violation of State or
Federal law.
(2) The State loan originator supervisory authority ensures that all State-licensed loan
originators operating in the State are registered with Nationwide Mortgage Licensing
System and Registry.
(3) The State loan originator supervisory authority is required to regularly report viola-

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tions of such law, as well as enforcement actions and other relevant information, to the
Nationwide Mortgage Licensing System and
Registry.
(4) The State loan originator supervisory authority has a process in place for challenging
information contained in the Nationwide
Mortgage Licensing System and Registry.
(5) The State loan originator supervisory authority has established a mechanism to assess
civil money penalties for individuals acting as
mortgage originators in their State without a
valid license or registration.
(6) The State loan originator supervisory authority has established minimum net worth or
surety bonding requirements that reflect the
dollar amount of loans originated by a residential mortgage loan originator, or has established a recovery fund paid into by the loan
originators.
(e) Temporary extension of period
The Director may extend, by not more than 24
months, the 1-year or 2-year period, as the case
may be, referred to in subsection (a) for the licensing of loan originators in any State under a
State licensing law that meets the requirements
of sections 5104 and 5105 of this title and subsection (d) if the Director determines that such
State is making a good faith effort to establish
a State licensing law that meets such requirements, license mortgage originators under such
law, and register such originators with the Nationwide Mortgage Licensing System and Registry.
(f) Regulation authority
(1) In general
The Bureau is authorized to promulgate regulations setting minimum net worth or surety
bond requirements for residential mortgage
loan originators and minimum requirements
for recovery funds paid into by loan originators.
(2) Considerations
In issuing regulations under paragraph (1),
the Bureau shall take into account the need to
provide originators adequate incentives to
originate affordable and sustainable mortgage
loans, as well as the need to ensure a competitive origination market that maximizes consumer access to affordable and sustainable
mortgage loans.
(Pub. L. 110–289, div. A, title V, § 1508, July 30,
2008, 122 Stat. 2818; Pub. L. 111–203, title X,
§ 1100(3), (6), July 21, 2010, 124 Stat. 2106.)
Editorial Notes
AMENDMENTS
2010—Pub. L. 111–203, § 1100(3), (6)(A), inserted section
catchline, struck out former section catchline which
read ‘‘Secretary of Housing and Urban Development
backup authority to establish a loan originator licensing system’’, and substituted ‘‘Director’’ for ‘‘Secretary’’ wherever appearing in text.
Subsec. (f). Pub. L. 111–203, § 1100(6)(B), added subsec.
(f).
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2010 AMENDMENT
Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L.

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Page 1783

111–203, set out as a note under section 552a of Title 5,
Government Organization and Employees.

§ 5108. Backup authority to establish a nationwide mortgage licensing and registry system
If at any time the Director determines that
the Nationwide Mortgage Licensing System and
Registry is failing to meet the requirements and
purposes of this chapter for a comprehensive licensing, supervisory, and tracking system for
loan originators, the Director shall establish
and maintain such a system to carry out the
purposes of this chapter and the effective registration and regulation of loan originators.
(Pub. L. 110–289, div. A, title V, § 1509, July 30,
2008, 122 Stat. 2819; Pub. L. 111–203, title X,
§ 1100(3), July 21, 2010, 124 Stat. 2106.)

(Pub. L. 110–289, div. A, title V, § 1511, July 30,
2008, 122 Stat. 2819; Pub. L. 114–94, div. G, title
LXXXVIII, § 88002, Dec. 4, 2015, 129 Stat. 1799.)
Editorial Notes
AMENDMENTS

AMENDMENTS

2015—Subsec. (a). Pub. L. 114–94 inserted ‘‘and other
financial service providers’’ after ‘‘State-licensed loan
originators’’ and ‘‘or other financial service providers’’
before period at end.

Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2010 AMENDMENT
Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L.
111–203, set out as a note under section 552a of Title 5,
Government Organization and Employees.

§ 5109. Fees
The Bureau, the Farm Credit Administration,
and the Nationwide Mortgage Licensing System
and Registry may charge reasonable fees to
cover the costs of maintaining and providing access to information from the Nationwide Mortgage Licensing System and Registry, to the extent that such fees are not charged to consumers
for access to such system and registry.
(Pub. L. 110–289, div. A, title V, § 1510, as added
Pub. L. 111–203, title X, § 1100(7), July 21, 2010, 124
Stat. 2107.)
Editorial Notes
PRIOR PROVISIONS
A prior section 5109, Pub. L. 110–289, div. A, title V,
§ 1510, July 30, 2008, 122 Stat. 2819, which related to fees,
was repealed by Pub. L. 111–203, title X, § 1100(7), July
21, 2010, 124 Stat. 2107.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective on the designated transfer date, see
section 1100H of Pub. L. 111–203, set out as an Effective
Date of 2010 Amendment note under section 552a of
Title 5, Government Organization and Employees.

§ 5110. Background checks of loan originators
(a) Access to records
Notwithstanding any other provision of law, in
providing identification and processing functions, the Attorney General shall provide access
to all criminal history information to the appropriate State officials responsible for regulating
State-licensed loan originators and other financial service providers to the extent criminal history background checks are required under the

10:17 Oct 12, 2021

laws of the State for the licensing of such loan
originators or other financial service providers.
(b) Agent
For the purposes of this section and in order
to reduce the points of contact which the Federal Bureau of Investigation may have to maintain for purposes of subsection (a), the Conference of State Bank Supervisors or a wholly
owned subsidiary may be used as a channeling
agent of the States for requesting and distributing information between the Department of
Justice and the appropriate State agencies .

Editorial Notes

2010—Pub. L. 111–203 substituted ‘‘Director’’ for ‘‘Secretary’’ in two places.

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§ 5111. Confidentiality of information
(a) System confidentiality
Except as otherwise provided in this section,
any requirement under Federal or State law regarding the privacy or confidentiality of any information or material provided to the Nationwide Mortgage Licensing System and Registry
or a system established by the Director under
section 5108 of this title, and any privilege arising under Federal or State law (including the
rules of any Federal or State court) with respect
to such information or material, shall continue
to apply to such information or material after
the information or material has been disclosed
to the system. Such information and material
may be shared with all State and Federal regulatory officials with mortgage or financial services industry oversight authority without the
loss of privilege or the loss of confidentiality
protections provided by Federal and State laws.
(b) Nonapplicability of certain requirements
Information or material that is subject to a
privilege or confidentiality under subsection (a)
shall not be subject to—
(1) disclosure under any Federal or State law
governing the disclosure to the public of information held by an officer or an agency of the
Federal Government or the respective State;
or
(2) subpoena or discovery, or admission into
evidence, in any private civil action or administrative process, unless with respect to any
privilege held by the Nationwide Mortgage Licensing System and Registry or the Director
with respect to such information or material,
the person to whom such information or material pertains waives, in whole or in part, in the
discretion of such person, that privilege.
(c) Coordination with other law
Any State law, including any State open
record law, relating to the disclosure of confidential supervisory information or any information or material described in subsection (a)
that is inconsistent with subsection (a) shall be

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TITLE 12—BANKS AND BANKING

superseded by the requirements of such provision to the extent State law provides less confidentiality or a weaker privilege.
(d) Public access to information
This section shall not apply with respect to
the information or material relating to the employment history of, and publicly adjudicated
disciplinary and enforcement actions against,
loan originators that is included in Nationwide
Mortgage Licensing System and Registry for access by the public.
(Pub. L. 110–289, div. A, title V, § 1512,
2008, 122 Stat. 2820; Pub. L. 111–203,
§ 1100(3), July 21, 2010, 124 Stat. 2106;
114–113, div. O, title VII, § 703, Dec. 18,
Stat. 3025.)

July 30,
title X,
Pub. L.
2015, 129

Page 1784

licensing or registration as loan originators.’’ and
added pars. (1) and (2).
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2018 AMENDMENT
Pub. L. 115–174, title I, § 106(d), May 24, 2018, 132 Stat.
1304, provided that: ‘‘This section [enacting section 5117
of this title and amending this section] and the amendments made by this section shall take effect on the
date that is 18 months after the date of enactment of
this Act [May 24, 2018].’’
EFFECTIVE DATE
Section effective on the designated transfer date, see
section 1100H of Pub. L. 111–203, set out as an Effective
Date of 2010 Amendment note under section 552a of
Title 5, Government Organization and Employees.

§ 5113. Enforcement by the Bureau
Editorial Notes
AMENDMENTS
2015—Subsec. (a). Pub. L. 114–113 inserted ‘‘or financial services’’ before ‘‘industry’’.
2010—Subsecs. (a), (b)(2). Pub. L. 111–203 substituted
‘‘Director’’ for ‘‘Secretary’’.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2010 AMENDMENT
Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L.
111–203, set out as a note under section 552a of Title 5,
Government Organization and Employees.

§ 5112. Liability provisions
The Bureau, any State official or agency, or
any organization serving as the administrator of
the Nationwide Mortgage Licensing System and
Registry or a system established by the Director
under section 5108 of this title, or any officer or
employee of any such entity, shall not be subject to any civil action or proceeding for monetary damages by reason of the good faith action
or omission of any officer or employee of any
such entity, while acting within the scope of office or employment, relating to the collection,
furnishing, or dissemination of information concerning persons who—
(1) have applied, are applying, or are licensed
or registered through the Nationwide Mortgage Licensing System and Registry; and
(2) work in an industry with respect to
which persons were licensed or registered
through the Nationwide Mortgage Licensing
System and Registry on May 24, 2018.
(Pub. L. 110–289, div. A, title V, § 1513, as added
Pub. L. 111–203, title X, § 1100(8), July 21, 2010, 124
Stat. 2107; amended Pub. L. 115–174, title I,
§ 106(c), May 24, 2018, 132 Stat. 1304.)
Editorial Notes
PRIOR PROVISIONS
A prior section 5112, Pub. L. 110–289, div. A, title V,
§ 1513, July 30, 2008, 122 Stat. 2820, which barred liability
for good faith actions or omissions by certain entities’
officers or employees, was repealed by Pub. L. 111–203,
title X, § 1100(8), July 21, 2010, 124 Stat. 2107.
AMENDMENTS
2018—Pub. L. 115–174 substituted ‘‘persons who—’’ for
‘‘persons who are loan originators or are applying for

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(a) Summons authority
The Director may—
(1) examine any books, papers, records, or
other data of any loan originator operating in
any State which is subject to a licensing system established by the Director under section
5107 of this title; and
(2) summon any loan originator referred to
in paragraph (1) or any person having possession, custody, or care of the reports and
records relating to such loan originator, to appear before the Director or any delegate of the
Director at a time and place named in the
summons and to produce such books, papers,
records, or other data, and to give testimony,
under oath, as may be relevant or material to
an investigation of such loan originator for
compliance with the requirements of this
chapter.
(b) Examination authority
(1) In general
If the Director establishes a licensing system under section 5107 of this title for any
State, the Director shall appoint examiners
for the purposes of administering such section.
(2) Power to examine
Any examiner appointed under paragraph (1)
shall have power, on behalf of the Director, to
make any examination of any loan originator
operating in any State which is subject to a licensing system established by the Director
under section 5107 of this title whenever the
Director determines an examination of any
loan originator is necessary to determine the
compliance by the originator with this chapter.
(3) Report of examination
Each examiner appointed under paragraph
(1) shall make a full and detailed report of examination of any loan originator examined to
the Director.
(4) Administration of oaths and affirmations;
evidence
In connection with examinations of loan
originators operating in any State which is
subject to a licensing system established by
the Director under section 5107 of this title, or
with other types of investigations to determine compliance with applicable law and reg-

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TITLE 12—BANKS AND BANKING

ulations, the Director and examiners appointed by the Director may administer oaths
and affirmations and examine and take and
preserve testimony under oath as to any matter in respect to the affairs of any such loan
originator.
(5) Assessments
The cost of conducting any examination of
any loan originator operating in any State
which is subject to a licensing system established by the Director under section 5107 of
this title shall be assessed by the Director
against the loan originator to meet the Secretary’s 1 expenses in carrying out such examination.
(c) Cease and desist proceeding
(1) Authority of Director
If the Director finds, after notice and opportunity for hearing, that any person is violating, has violated, or is about to violate any
provision of this chapter, or any regulation
thereunder, with respect to a State which is
subject to a licensing system established by
the Director under section 5107 of this title,
the Director may publish such findings and
enter an order requiring such person, and any
other person that is, was, or would be a cause
of the violation, due to an act or omission the
person knew or should have known would contribute to such violation, to cease and desist
from committing or causing such violation
and any future violation of the same provision, rule, or regulation. Such order may, in
addition to requiring a person to cease and desist from committing or causing a violation,
require such person to comply, or to take
steps to effect compliance, with such provision
or regulation, upon such terms and conditions
and within such time as the Director may
specify in such order. Any such order may, as
the Director deems appropriate, require future
compliance or steps to effect future compliance, either permanently or for such period of
time as the Director may specify, with such
provision or regulation with respect to any
loan originator.
(2) Hearing
The notice instituting proceedings pursuant
to paragraph (1) shall fix a hearing date not
earlier than 30 days nor later than 60 days
after service of the notice unless an earlier or
a later date is set by the Director with the
consent of any respondent so served.
(3) Temporary order
Whenever the Director determines that the
alleged violation or threatened violation specified in the notice instituting proceedings pursuant to paragraph (1), or the continuation
thereof, is likely to result in significant dissipation or conversion of assets, significant
harm to consumers, or substantial harm to the
public interest prior to the completion of the
proceedings, the Director may enter a temporary order requiring the respondent to cease
and desist from the violation or threatened
violation and to take such action to prevent
1 So

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in original. Probably should be ‘‘Director’s’’.

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§ 5113

the violation or threatened violation and to
prevent dissipation or conversion of assets,
significant harm to consumers, or substantial
harm to the public interest as the Director
deems appropriate pending completion of such
proceedings. Such an order shall be entered
only after notice and opportunity for a hearing, unless the Director determines that notice and hearing prior to entry would be impracticable or contrary to the public interest.
A temporary order shall become effective upon
service upon the respondent and, unless set
aside, limited, or suspended by the Director or
a court of competent jurisdiction, shall remain effective and enforceable pending the
completion of the proceedings.
(4) Review of temporary orders
(A) Review by Director
At any time after the respondent has been
served with a temporary cease and desist
order pursuant to paragraph (3), the respondent may apply to the Director to have the
order set aside, limited, or suspended. If the
respondent has been served with a temporary cease and desist order entered without a prior hearing before the Director, the
respondent may, within 10 days after the
date on which the order was served, request
a hearing on such application and the Director shall hold a hearing and render a decision on such application at the earliest possible time.
(B) Judicial review
Within—
(i) 10 days after the date the respondent
was served with a temporary cease and desist order entered with a prior hearing before the Director; or
(ii) 10 days after the Director renders a
decision on an application and hearing
under paragraph (1), with respect to any
temporary cease and desist order entered
without a prior hearing before the Director,
the respondent may apply to the United
States district court for the district in
which the respondent resides or has its principal place of business, or for the District of
Columbia, for an order setting aside, limiting, or suspending the effectiveness or enforcement of the order, and the court shall
have jurisdiction to enter such an order. A
respondent served with a temporary cease
and desist order entered without a prior
hearing before the Director may not apply to
the court except after hearing and decision
by the Director on the respondent’s application under subparagraph (A).
(C) No automatic stay of temporary order
The commencement of proceedings under
subparagraph (B) shall not, unless specifically ordered by the court, operate as a stay
of the Secretary’s 1 order.
(5) Authority of the Director to prohibit persons from serving as loan originators
In any cease and desist proceeding under
paragraph (1), the Director may issue an order
to prohibit, conditionally or unconditionally,

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and permanently or for such period of time as
the Director shall determine, any person who
has violated this chapter or regulations thereunder, from acting as a loan originator if the
conduct of that person demonstrates unfitness
to serve as a loan originator.
(d) Authority of the Director to assess money
penalties
(1) In general
The Director may impose a civil penalty on
a loan originator operating in any State which
is subject to a licensing system established by
the Director under section 5107 of this title, if
the Director finds, on the record after notice
and opportunity for hearing, that such loan
originator has violated or failed to comply
with any requirement of this chapter or any
regulation prescribed by the Director under
this chapter or order issued under subsection
(c).
(2) Maximum amount of penalty
The maximum amount of penalty for each
act or omission described in paragraph (1)
shall be $25,000.
(Pub. L. 110–289, div. A, title V, § 1514, July 30,
2008, 122 Stat. 2821; Pub. L. 111–203, title X,
§ 1100(3), (9), July 21, 2010, 124 Stat. 2106, 2107.)
Editorial Notes
AMENDMENTS
Pub. L. 111–203 substituted ‘‘by the Bureau’’ for
‘‘under HUD backup licensing system’’ in section
catchline and ‘‘Director’’ for ‘‘Secretary’’ wherever appearing in text.
Statutory Notes and Related Subsidiaries

registration law of such State, or claims to
act without such authority.
(4) No person subject to investigation or examination under this section may knowingly
withhold, abstract, remove, mutilate, destroy,
or secrete any books, records, computer
records, or other information.
(Pub. L. 110–289, div. A, title V, § 1515, July 30,
2008, 122 Stat. 2823.)
§ 5115. Reports and recommendations to Congress
(a) Annual reports
Not later than 1 year after July 30, 2008, and
annually thereafter, the Director shall submit a
report to Congress on the effectiveness of the
provisions of this chapter, including legislative
recommendations, if any, for strengthening consumer protections, enhancing examination
standards, streamlining communication between
all stakeholders involved in residential mortgage loan origination and processing, and establishing performance based bonding requirements
for mortgage originators or institutions that
employ such brokers.
(b) Legislative recommendations
Not later than 6 months after July 30, 2008, the
Director shall make recommendations to Congress on legislative reforms to the Real Estate
Settlement Procedures Act of 1974 [12 U.S.C. 2601
et seq.], that the Director deems appropriate to
promote more transparent disclosures, allowing
consumers to better shop and compare mortgage
loan terms and settlement costs.
(Pub. L. 110–289, div. A, title V, § 1516, July 30,
2008, 122 Stat. 2824; Pub. L. 111–203, title X,
§ 1100(3), July 21, 2010, 124 Stat. 2106.)

EFFECTIVE DATE OF 2010 AMENDMENT

Editorial Notes

Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L.
111–203, set out as a note under section 552a of Title 5,
Government Organization and Employees.

§ 5114. State examination authority
In addition to any authority allowed under
State law a State licensing agency shall have
the authority to conduct investigations and examinations as follows:
(1) For the purposes of investigating violations or complaints arising under this chapter,
or for the purposes of examination, the State
licensing agency may review, investigate, or
examine any loan originator licensed or required to be licensed under this chapter, as
often as necessary in order to carry out the
purposes of this chapter.
(2) Each such loan originator shall make
available upon request to the State licensing
agency the books and records relating to the
operations of such originator. The State licensing agency may have access to such books
and records and interview the officers, principals, loan originators, employees, independent contractors, agents, and customers of
the licensee concerning their business.
(3) The authority of this section shall remain in effect, whether such a loan originator
acts or claims to act under any licensing or

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REFERENCES IN TEXT
The Real Estate Settlement Procedures Act of 1974,
referred to in subsec. (b), is Pub. L. 93–533, Dec. 22, 1974,
88 Stat. 1724, which is classified principally to chapter
27 (§ 2601 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set
out under section 2601 of this title and Tables.
AMENDMENTS
2010—Pub. L. 111–203 substituted ‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2010 AMENDMENT
Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L.
111–203, set out as a note under section 552a of Title 5,
Government Organization and Employees.

§ 5116. Study and reports on defaults and foreclosures
(a) Study required
The Director shall conduct an extensive study
of the root causes of default and foreclosure of
home loans, using as much empirical data as is
available.
(b) Preliminary report to Congress
Not later than 6 months after July 30, 2008, the
Director shall submit to Congress a preliminary

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report regarding the study required by this section.
(c) Final report to Congress
Not later than 12 months after July 30, 2008,
the Director shall submit to Congress a final report regarding the results of the study required
by this section, which shall include any recommended legislation relating to the study, and
recommendations for best practices and for a
process to provide targeted assistance to populations with the highest risk of potential default
or foreclosure.
(Pub. L. 110–289, div. A, title V, § 1517, July 30,
2008, 122 Stat. 2824; Pub. L. 111–203, title X,
§ 1100(3), July 21, 2010, 124 Stat. 2106.)
Editorial Notes
AMENDMENTS
2010—Pub. L. 111–203 substituted ‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2010 AMENDMENT
Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L.
111–203, set out as a note under section 552a of Title 5,
Government Organization and Employees.

§ 5117. Employment transition of loan originators
(a) Definitions
In this section:
(1) Application State
The term ‘‘application State’’ means a State
in which a registered loan originator or a
State-licensed loan originator seeks to be licensed.
(2) State-licensed mortgage company
The term ‘‘State-licensed mortgage company’’ means an entity that is licensed or registered under the law of any State to engage in
residential mortgage loan origination and
processing activities.
(b) Temporary authority to originate loans for
loan originators moving from a depository
institution to a non-depository institution
(1) In general
Upon becoming employed by a State-licensed mortgage company, an individual who
is a registered loan originator shall be deemed
to have temporary authority to act as a loan
originator in an application State for the period described in paragraph (2) if the individual—
(A) has not had—
(i) an application for a loan originator license denied; or
(ii) a loan originator license revoked or
suspended in any governmental jurisdiction;
(B) has not been subject to, or served with,
a cease and desist order—
(i) in any governmental jurisdiction; or
(ii) under section 5113(c) of this title;
(C) has not been convicted of a misdemeanor or felony that would preclude li-

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§ 5117

censure under the law of the application
State;
(D) has submitted an application to be a
State-licensed loan originator in the application State; and
(E) was registered in the Nationwide Mortgage Licensing System and Registry as a
loan originator during the 1-year period preceding the date on which the information required under section 5104(a) of this title is
submitted.
(2) Period
The period described in this paragraph shall
begin on the date on which an individual described in paragraph (1) submits the information required under section 5104(a) of this title
and shall end on the earliest of the date—
(A) on which the individual withdraws the
application to be a State-licensed loan originator in the application State;
(B) on which the application State denies,
or issues a notice of intent to deny, the application;
(C) on which the application State grants
a State license; or
(D) that is 120 days after the date on which
the individual submits the application, if the
application is listed on the Nationwide
Mortgage Licensing System and Registry as
incomplete.
(c) Temporary authority to originate loans for
State-licensed loan originators moving interstate
(1) In general
A State-licensed loan originator shall be
deemed to have temporary authority to act as
a loan originator in an application State for
the period described in paragraph (2) if the
State-licensed loan originator—
(A) meets the requirements of subparagraphs (A), (B), (C), and (D) of subsection
(b)(1);
(B) is employed by a State-licensed mortgage company in the application State; and
(C) was licensed in a State that is not the
application State during the 30-day period
preceding the date on which the information
required under section 5104(a) of this title
was submitted in connection with the application submitted to the application State.
(2) Period
The period described in this paragraph shall
begin on the date on which the State-licensed
loan originator submits the information required under section 5104(a) of this title in
connection with the application submitted to
the application State and end on the earliest
of the date—
(A) on which the State-licensed loan originator withdraws the application to be a
State-licensed loan originator in the application State;
(B) on which the application State denies,
or issues a notice of intent to deny, the application;
(C) on which the application State grants
a State license; or
(D) that is 120 days after the date on which
the State-licensed loan originator submits

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the application, if the application is listed
on the Nationwide Mortgage Licensing System and Registry as incomplete.
(d) Applicability
(1) Employer of loan originators
Any person employing an individual who is
deemed to have temporary authority to act as
a loan originator in an application State
under this section shall be subject to the requirements of this chapter and to applicable
State law to the same extent as if that individual was a State-licensed loan originator licensed by the application State.
(2) Engaging in mortgage loan activities
Any individual who is deemed to have temporary authority to act as a loan originator in
an application State under this section and
who engages in residential mortgage loan
origination activities shall be subject to the
requirements of this chapter and to applicable
State law to the same extent as if that individual was a State-licensed loan originator licensed by the application State.
(Pub. L. 110–289, div. A, title V, § 1518, as added
Pub. L. 115–174, title I, § 106(a), May 24, 2018, 132
Stat. 1302.)
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective 18 months after May 24, 2018, see
section 106(d) of Pub. L. 115–174, set out as an Effective
Date of 2018 Amendment note under section 5112 of this
title.

CHAPTER 52—EMERGENCY ECONOMIC
STABILIZATION
Sec.

5201.
5202.

Purposes.
Definitions.

SUBCHAPTER I—TROUBLED ASSETS RELIEF
PROGRAM
5211.
5212.
5213.
5214.
5215.
5216.
5217.
5218.
5219.
5219a.
5219b.
5220.
5220a.
5220b.
5221.
5222.
5223.
5224.
5225.
5226.
5227.
5228.
5229.

VerDate 0ct 09 2002

Purchases of troubled assets.
Insurance of troubled assets.
Considerations.
Financial Stability Oversight Board.
Reports.
Rights; management; sale of troubled assets;
revenues and sale proceeds.
Contracting procedures.
Conflicts of interest.
Foreclosure mitigation efforts.
Home Affordable Modification Program
guidelines.
Public availability of information of Making
Home Affordable Program.
Assistance to homeowners.
Application of GSE conforming loan limit to
mortgages assisted with TARP funds.
Multifamily mortgage resolution program.
Executive compensation and corporate governance.
Coordination with foreign authorities and
central banks.
Minimization of long-term costs and maximization of benefits for taxpayers.
Market transparency.
Graduated authorization to purchase.
Oversight and audits.
Study and report on margin authority.
Funding.
Judicial review and related matters.

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Sec.

5230.
5231.
5231a.

5232.
5233.
5234.
5235.
5236.
5237.
5238.
5239.
5240.
5241.

Termination of authority.
Special Inspector General for the Troubled
Asset Relief Program.
Public-Private Investment Program; additional appropriations for the Special Inspector General for the Troubled Asset Relief Program.
Credit reform.
Congressional Oversight Panel.
Cooperation with the FBI.
Disclosures on exercise of loan authority.
Exchange Stabilization Fund reimbursement.
Authority to suspend mark-to-market accounting.
Study on mark-to-market accounting.
Recoupment.
Preservation of authority.
Temporary increase in deposit and share insurance coverage.

SUBCHAPTER II—BUDGET-RELATED PROVISIONS
5251.
5252.

5253.

Information for congressional support agencies.
Reports by the Office of Management and
Budget and the Congressional Budget Office.
Emergency treatment.
SUBCHAPTER III—TAX PROVISIONS

5261.

Gain or loss from sale or exchange of certain
preferred stock.

§ 5201. Purposes
The purposes of this chapter are—
(1) to immediately provide authority and facilities that the Secretary of the Treasury can
use to restore liquidity and stability to the financial system of the United States; and
(2) to ensure that such authority and such
facilities are used in a manner that—
(A) protects home values, college funds, retirement accounts, and life savings;
(B) preserves homeownership and promotes
jobs and economic growth;
(C) maximizes overall returns to the taxpayers of the United States; and
(D) provides public accountability for the
exercise of such authority.
(Pub. L. 110–343, div. A, § 2, Oct. 3, 2008, 122 Stat.
3766.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in text, was in the original
‘‘this Act’’ and was translated as reading ‘‘this division’’, meaning div. A of Pub. L. 110–343, Oct. 3, 2008, 122
Stat. 3765, known as the Emergency Economic Stabilization Act of 2008, to reflect the probable intent of
Congress. For complete classification of division A to
the Code, see Short Title note set out below and Tables.
Statutory Notes and Related Subsidiaries
SHORT TITLE OF 2010 AMENDMENT
Pub. L. 111–203, title XIII, § 1301, July 21, 2010, 124
Stat. 2133, provided that: ‘‘This title [amending sections 1431, 1455, 1719, 5216, and 5225 of this title and enacting provisions set out as a note under section 1455 of
this title] may be cited as the ‘Pay It Back Act’.’’
SHORT TITLE OF 2009 AMENDMENT
Pub. L. 111–22, div. A, § 1(a), May 20, 2009, 123 Stat.
1632, provided that: ‘‘This division [enacting sections

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