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Important Update: Changes in FDIC Deposit Insurance Coverage

The FDIC deposit insurance rules have undergone a series of changes starting in the fall of 2008. As a result, certain previously published information related to FDIC insurance coverage may not reflect the current rules. For details about the changes, visit Changes in FDIC Deposit Insurance Coverage. For more information about FDIC insurance, go to www.fdic.gov/deposit/deposits/index.html or call toll-free 1-877-ASK-FDIC (1-877-275-3342). For the hearing-impaired, the number is 1-800-925-4618.

Summer 2011

New Standards, Disclosures for Mortgage Professionals Can Help Consumers Find a Loan Originator

Summer 2011 - New Standards, Disclosures for Mortgage Professionals Can Help Consumers Find a Loan Originator

Among the steps taken by Congress in 2008 to enhance consumer protections and reduce fraud in the residential mortgage industry was to pass the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (the SAFE Act ).

The law also establishes minimum standards for mortgage loan originators (MLOs) who are state-licensed (primarily independent mortgage brokers) and requires all MLOs employed by federally regulated depository institutions and Farm Credit System institutions, as well as certain subsidiaries, to register with the Nationwide Mortgage Licensing System and Registry (NMLS).

Now here’s an update: While the initial registration of state-licensed mortgage loan originators was completed last year, the initial registration period for federally regulated MLOs (such as loan officers at banks and credit unions) just ended on July 29, 2011. As a result, the NMLS “Consumer Access” Web site — a free, searchable service at www.nmlsconsumeraccess.org — provides useful information about all licensed and registered MLOs. In the future, the public database will be expanded to include information about certain relevant disciplinary or enforcement actions taken against federally registered MLOs.

Each licensed or registered MLO also will be assigned a “unique identifier” that consumers may use to find MLOs in the Consumer Access database. The unique identifier is an identification number that will stay with an MLO for life. Consumers may find the identifiers especially useful when searching for information about an MLO with a common name or someone whose name or employer has changed. The unique identifier is made publicly available in a variety of ways and can be obtained from an MLO upon request.

“The SAFE Act is intended to improve the accountability and tracking of residential mortgage loan originators, whether they are regulated by the federal banking agencies or state regulators,” said Victoria Pawelski, an FDIC Senior Policy Analyst.

Added Richard Foley, a Counsel in the FDIC's Legal Division, "For consumers, having some of this information should be a helpful first step in checking out the credentials of a mortgage loan originator."


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Last Updated 9/6/2011

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