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SB 936

AN ACT RELATING TO FINANCIAL INSTITUTIONS -- AN ACT ADOPTING THE FEDERAL SECURE AND FAIR ENFORCEMENT FOR MORTGAGE LICENSING ACT OF 2009

2025 Regular Session Introduced by Pete Appollonio and 2 co-sponsors

Rhode Island adopts the federal SAFE Act to require mortgage originators meet uniform licensing, background check, and education standards, modernizing state oversight.

06/24/2025 Signed by Governor
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WeVote Research Nonpartisan
Bill Summary · SB 936

Legislative bill overview

SB 936 adopts Rhode Island's compliance with the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2009 (SAFE Act), which establishes uniform standards for mortgage loan originators. The bill requires state-level licensing, background checks, and continuing education for individuals originating residential mortgages, bringing Rhode Island into alignment with federal regulatory frameworks already implemented in other states.

Why is this important

The SAFE Act creates a standardized licensing system that protects consumers from unqualified or fraudulent mortgage originators while reducing interstate regulatory fragmentation. By formally adopting this federal framework, Rhode Island strengthens oversight of the mortgage lending industry and ensures its residents have consistent consumer protections comparable to other states.

Potential points of contention

  • Implementation costs: Mortgage lenders and originators may face new licensing fees, compliance infrastructure, and training expenses that could increase borrowing costs or reduce market competition among smaller lenders
  • Regulatory burden: Small mortgage companies or independent loan officers may struggle with background check requirements and continuing education mandates, potentially consolidating the industry toward larger firms
  • Consumer impact timeline: Implementation delays could affect mortgage availability or approval timelines during the transition period, though long-term effects are typically stabilizing

Compiled from official sources — confirm details with the bill’s official record.

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