Today I’m following the passage of bill HR 3221, the Foreclosure Prevention Act of 2008. I believe from this point, it will go back to the House for their approval of the Senate’s revisions. There are a lot of provisions inside the bill, but this one caught my eye:

Inside is a provision for the S.A.F.E. Mortgage Licensing Act:

S.A.F.E. Mortgage Licensing Act. The bill requires that all residential mortgage loan originators
be licensed, provide fingerprints, a summary of work experience, and consent for a background
check to authorities. States are given 12 months to develop licensing standards to ensure that
applicants meet the following minimum criteria: (1) No felony conviction involving an act of fraud, dishonesty, a breach of trust, or money laundering (no other felony seven years prior to application); 2) No similar license ever revoked; (3) A demonstrated record of financial responsibility; (4) Meet minimum net worth or bonding requirement (set by state); (5) Successful completion of education requirements (20 hours of approved courses, to include at least 3 hours related to federal laws, 3 hours on ethics and consumer protection in mortgage lending, and 2 hours on the subprime mortgage marketplace); and (6) Passage of a written exam (a minimum score of 75 percent is required to pass). If states do not comply, the Housing and Urban Development (HUD) Secretary is empowered to quickly develop the national database and license, generating revenue for its implementation through fees to license applicants.

If the bill passes, there will be money set aside for a new FHA program to help refinance an estimated 400,000 homeowners in default, and an increase in FHA loan limits.

I found this buried on page 8:

The bill requires that disclosures be provided no later than 7 days prior to closing so
borrowers can shop for another loan if not satisfied with the terms.