The Secure and Fair Mortgage Licensing Act (SAFE Act) was enacted on July 30, 2008 as part of the Housing and Economic Recovery Act of 2008. The SAFE Act, among other things, requires states to adopt licensing and registration requirements for loan originators within certain minimum standards. If HUD determines that a state fails to establish such minimum standards consistent with the SAFE Act, HUD must then establish and implement a licensing system in that state. This proposed rule sets forth the SAFE Act’s minimum licensing requirements for loan originators and delineates the HUD procedure for determining a state’s compliance therewith and procedures for taking over the licensing system in the event of a state’s non-compliance. Comments on this proposed rule are due on February 16, 2010. [Download.]

Related to the most recent federal housing related posting, we post a link to the above-entitled HUD Housing Notice that may be of use to advocates. A primary purpose of this Notice is to provide updated guidance to owners and management agents of HUD assisted housing regarding the use of data in EIV for verifying employment and income at recertification of individuals participating in HUD rental assistance programs. [Click here to get to the HUDCLIPS page and then click on the link to H 9-20.]

This final rule, which takes effect on January 31, 2010, relates to the requirement that public housing agencies and multifamily HUD housing owners and managers use the Enterprise Income Verification (EIV) system for program applicants and participants. This rule follows the proposed rule published on October 15, 2009 on which HUD received numerous comments, including comments from housing advocates and organizations. As was required in the proposed rule, this final rule requires all applicants and program participants to submit a social security number to verify income except for any current program participants who have previously submitted a valid SSN and current participants 62 years of age or older as of January 31, 2010. New households members 6 years and older and those younger than 6 who have been issued a SSN must also submit their SSN.

Accepted forms of SSN documentation under the rule are (1) a valid social security card issued by the Social Security Administration; 2) an original document issued by federal or state government agency with the SSN and name of the applicant or participant plus other identifying information; or 3) “such other evidence of the SSN that HUD may prescribe in administrative instructions.”

The three technical changes from the October 15 propose rule are clarifications that 1) new household members under 6 years old who already have an SSN must submit the requisite info regarding the SSN; 2) that an entire household could lose its tenancy if one member fails to comply with the SSN disclosure requirements, subject to HUD exemptions provided HUD regulations; and 3) that the senior exemption applies for all future income examinations, including if the senior moves to a new HUD-assisted property. [Download.]