text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``SAFE Transitional License Act''.
  
  SEC. 2. ELIMINATING BARRIERS TO JOBS FOR LOAN ORIGINATORS.
  
      (a) In General.--The S.A.F.E. Mortgage Licensing Act of 2008 (12 
  U.S.C. 5101 et seq.) is amended by adding at the end the following:
  
  ``SEC. 1518. EMPLOYMENT TRANSITION OF LOAN ORIGINATORS.
  
      ``(a) Temporary Authority To Originate Loans for Loan Originators 
  Moving From a Depository Institution to a Non-Depository Institution.--
              ``(1) In general.--Upon employment 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 an application for a loan 
                  originator license denied, or had such a license 
                  revoked or suspended in any governmental jurisdiction;
                      ``(B) has not been subject to or served with a 
                  cease and desist order in any governmental jurisdiction 
                  or as described in section 1514(c);
                      ``(C) has not been convicted of a felony that would 
                  preclude licensure 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 12-month period preceding the date of 
                  submission of the information required under section 
                  1505(a).
              ``(2) Period.--The period described in this paragraph shall 
          begin on the date on which the individual submits the 
          information required under section 1505(a) and shall end on the 
          earliest of--
                      ``(A) the date on which the individual withdraws 
                  the application to be a State-licensed loan originator 
                  in the application State;
                      ``(B) the date on which the application State 
                  denies, or issues a notice of intent to deny, the 
                  application;
                      ``(C) the date on which the application State 
                  grants a State license; or
                      ``(D) the date 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.
      ``(b) 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 (a)(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 of submission of the information required 
                  under section 1505(a) 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 1505(a) in 
          connection with the application submitted to the application 
          State and end on the earliest of--
                      ``(A) the date on which the State-licensed loan 
                  originator withdraws the application to be a State-
                  licensed loan originator in the application State;
                      ``(B) the date on which the application State 
                  denies, or issues a notice of intent to deny, the 
                  application;
                      ``(C) the date on which the application State 
                  grants a State license; or
                      ``(D) the date that is 120 days after the date on 
                  which the State-licensed loan originator submits the 
                  application, if the application is listed on the 
                  Nationwide Mortgage Licensing System and Registry as 
                  incomplete.
      ``(c) 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 pursuant to this 
          section shall be subject to the requirements of this title and 
          to applicable State law to the same extent as if such 
          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 pursuant to this section and 
          who engages in residential mortgage loan origination activities 
          shall be subject to the requirements of this title and to 
          applicable State law to the same extent as if such individual 
          was a State-licensed loan originator licensed by the 
          application State.
      ``(d) Definitions.--In this section, the following definitions 
  shall apply:
              ``(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 licensed or 
          registered under the law of any State to engage in residential 
          mortgage loan origination and processing activities.''.
      (b) Table of Contents Amendment.--The table of contents in section 
  1(b) of the Housing and Economic Recovery Act of 2008 (42 U.S.C. 4501 
  note) is amended by inserting after the item relating to section 1517 
  the following:
  
  ``Sec. 1518. Employment transition of loan originators.''.
      (c) Effective Date.--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.
target: SAFE Transitional License Act This bill amends the S.A.F.E. Mortgage Licensing Act of 2008 to temporarily allow loan originators that meet specified requirements to continue to originate loans after moving: (1)&nbsp;from one state to another, or (2) from a depository institution to a non-depository institution.
feat_title: SAFE Transitional License Act