SAFE Act

Question 1

What does SAFE stand for?

Answer 1

Secure and Fair Enforcement Act

Question 2

Associated law regarding SAFE?

Answer 2

It’s a very primary part of the Housing and Economic Recovery Act (HERA) of July 2008

Question 3

4 purposes of the SAFE Act are?

Answer 3

1. Increase uniformity of Mortgage Originator Licensing Nationwide
2. Reduces Regulatory burden for multi-state lenders
3. Raises standards to enhance consumer protection
4. Enables tracking of L.O.’s across state lines which reduces fraud

Question 4

What does the SAFE Act do?

Answer 4

1. Requires all LO’s to be registered with NMLS and to obtain a unique identifier
2. LO’s not working for a depository (bank/credit union) must be LICENSED by their state

Question 5

What did SAFE create?

Answer 5

NMLS: Nationwide Mortgage Licensing System. (Can also be called the NMLSR)

Question 6

What does the SAFE Act Define?

Answer 6

If defines procedures, requirements, education, testing and new standards for MLO registration and licensing

Question 7

Who enforces the SAFE Act?

Answer 7

The CFPB