---
kind: "section"
citation: "12 U.S.C. § 5101"
title: "12"
title_heading: "Banks and Banking"
number: "5101"
heading: "Purposes and methods for establishing a mortgage licensing system and registry"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/5101"
units:
  - "Chapter 51 — Secure and Fair Enforcement for Mortgage Licensing"
---

# §5101. Purposes and methods for establishing a mortgage licensing system and registry


In order to increase uniformity, reduce regulatory burden, enhance [consumer](/usc/12/5481.md?p=4) protection, and reduce fraud, the [States](/usc/12/5102.md?p=11), through the Conference of [State](/usc/12/5102.md?p=11) Bank Supervisors and the American Association of Residential [Mortgage](/usc/12/1707.md?p=a) Regulators, are hereby encouraged to establish a [Nationwide Mortgage Licensing System and Registry](/usc/12/5102.md?p=6) for the residential [mortgage](/usc/12/1707.md?p=a) industry that accomplishes all of the following objectives:

- (1) Provides uniform license applications and reporting requirements for [State-licensed loan originators](/usc/12/5102.md?p=12).
- (2) Provides a comprehensive licensing and supervisory database.
- (3) Aggregates and improves the flow of information to and between regulators.
- (4) Provides increased accountability and tracking of [loan originators](/usc/12/5102.md?p=4-A).
- (5) Streamlines the licensing process and reduces the regulatory burden.
- (6) Enhances [consumer](/usc/12/5481.md?p=4) protections and supports anti-fraud measures.
- (7) Provides [consumers](/usc/12/5481.md?p=4) with easily accessible information, offered at no charge, utilizing electronic media, including the Internet, regarding the employment history of, and publicly adjudicated disciplinary and enforcement actions against, [loan originators](/usc/12/5102.md?p=4-A).
- (8) Establishes a means by which [residential mortgage loan](/usc/12/5102.md?p=9) originators would, to the greatest extent possible, be required to act in the best interests of the [consumer](/usc/12/5481.md?p=4).
- (9) Facilitates responsible behavior in the subprime [mortgage](/usc/12/1707.md?p=a) market place and provides comprehensive training and examination requirements related to subprime [mortgage](/usc/12/1707.md?p=a) lending.
- (10) Facilitates the collection and disbursement of [consumer](/usc/12/5481.md?p=4) complaints on behalf of [State](/usc/12/5102.md?p=11) and Federal [mortgage](/usc/12/1707.md?p=a) regulators.

## Source credit

(Pub. L. 110–289, div. A, title V, § 1502, July 30, 2008, 122 Stat. 2810.)

## Notes

### Statutory Notes and Related Subsidiaries

### Short Title of 2015 Amendment

Pub. L. 114–94, div. G, title LXXXVIII, § 88001, Dec. 4, 2015, 129 Stat. 1799, provided that: “This title [amending section 5110 of this title] may be cited as the ‘State Licensing Efficiency Act of 2015’.”

### Short Title

Pub. L. 110–289, div. A, title V, § 1501, July 30, 2008, 122 Stat. 2810, provided that: “This title [enacting this chapter] may be cited as the ‘Secure and Fair Enforcement for Mortgage Licensing Act of 2008’ or ‘S.A.F.E. Mortgage Licensing Act of 2008’.”