This bill would grant state and federal
regulatory officials access to national mortgage information systems while staying in line with privacy laws. By amending the S.A.F.E. Mortgage Licensing Act of 2008
, regulators would have access to the Nationwide Mortgage Licensing System and Registry
(NMLSR), and the government would no longer consider it a loss of confidentiality.
Basically, this bill is opening up who can see the NMLSR. As the CBO notes in it's cost estimate of this bill:
"Under current law, the confidentiality of information submitted to the NMLSR, a system ... to register all originators of mortgage loans, is protected by state and federal privacy laws. [This bill] would extend those protections to information that is shared with state or federal officials that oversee the mortgage industry."
Even with the new privacy protections, this bill would not create any privilege, new licensing, or registration requirements through NMLS. It would allow for existing confidentiality or privilege to continue when
regulatory information is shared among state and federal regulators. This "regulatory information" usually concerns the expanded financial services
This legislation ensures that as the NLMS expands to contain non-bank financial services companies, the SAFE Act’s privacy protections would cover information from those sources as well.