May 27, 2011

RE: Reminder of Federal Registration Requirements under the S.A.F.E. Act for All Credit Unions and their Mortgage Loan Originators, and the Licensing of Mortgage-Related Credit Union Service Organization (CUSOs) as Mortgage Brokers

To the Chief Executive Officer of the Credit Union Addressed:

This letter serves as an important reminder for all Massachusetts state-chartered credit unions that are required to be federally registered. Please understand that, pursuant to the Secure and Fair Enforcement for Mortgage Licensing Act (the S.A.F.E. Act), all such credit unions that engage in mortgage lending as well as their designated employees must register with the Nationwide Mortgage Licensing System (NMLS). The deadline for such filing requirement is July 29, 2011. I am aware that many of you have already registered. Nevertheless, you may find the information below helpful.

As a credit union, it is important that you choose the Federal Registration Section to input your data. Information erroneously submitted and processed on the Mortgage Licensing Section of NMLS will not satisfy the filing requirement for a credit union. Furthermore, the fees will not be rebated.

There are a number of helpful tools available to assist you with the process. You are encouraged to access the NMLS Resource Center, which can be found at This website is a valuable resource and provides detailed information on how to complete the registration process. Also, you can access the NMLS Call Center at (240)386-4444. By pressing option #2, you can be directed to the federal registration process. Finally, for further questions or information relative to the registration process, you are urged to contact the National Credit Union Administration (NCUA) since this is a federal law mandate.

If you have not yet completed the federal registration process, I urge you to begin as soon as possible to ensure that you meet the July 29 th deadline. If you already have registered, I suggest you have an authorized non-registered employee enter the NMLS system and independently review the information to verify its accuracy and to ensure that the registration was accepted by the NMLS.

You are further reminded that all mortgage loan originators for credit unions must also register individually as well.

Also note that there is no additional or separate state registration requirement, as only federal registration is necessary.

However, for any credit unions that have partially or wholly-owned mortgage-related credit union service organizations (CUSOs), all such CUSOs are required to be licensed (as opposed to registered) as a mortgage broker or lender, as applicable, by the Massachusetts Division of Banks (Division) under Massachusetts General Laws (M.G.L.) chapter 255E. Additionally, mortgage loan originators of such a CUSO are required to be licensed under a separate statute (chapter 255F of the M.G.L.). For further detail on this matter, please refer to Opinion Letter O11012, which can be found on the Division's website at Additionally, the NCUA has established Frequently Asked Questions on the S.A.F.E. Act which can be accessed on its website at . It contains a question on CUSO employees.

Should you have any questions relative to this matter, please contact Chief Director Andrea Cipolla at (617)956-1532 or


David J. Cotney
Commissioner of Banks