WASHINGTON—The CFPB is proposing updates to its Privacy Act system governing the Nationwide Mortgage Licensing System and Registry, a move aimed at clarifying how personal information tied to mortgage loan originators and financial institutions is collected, used, and shared.
The proposal, published in the Federal Register, would modify the CFPB’s existing system of records rather than create new privacy requirements.
According to the CFPB, the changes are designed to better reflect how the registry actually operates, including the use of data for background investigations and identity verification. The updated purpose statement would explicitly cover criminal background checks for mortgage loan originators and identity verification for individuals who administer the system on behalf of regulated institutions, a process required for access to criminal history record information.
The proposal also expands the categories of individuals and records covered by the system. In addition to mortgage loan originators, the system would more clearly include primary institutional contacts, administrative users, and certain federal and state regulatory users, along with additional data elements such as contact information and identification materials used for verification purposes.
The CFPB said these updates align the system with the Secure and Fair Enforcement for Mortgage Licensing Act and related regulations.
Finally, the Bureau is updating records retention schedules and routine disclosures, including a new provision allowing information sharing with the National Archives and Records Administration for records management inspections. The CFPB emphasized that the revisions are largely clarifying and administrative in nature and are intended to align the registry’s privacy notice with federal guidance. Public comments on the proposal are due within 30 days of publication.