Answer:
Loan officers that are employed by financial institutions (banks, thrifts and credit unions) must register, be fingerprinted and checked. The SAFE Act presumes that these institutional employers have adequate compliance programs and train their loan officers. In contrast, the Act assumes that mortgage loan originators that work in mortgage companies or independently have not been properly trained and monitored. Therefore, the Act requires those folks to get trained and licensed.
First published on BankersOnline.com 7/12/10