SAFE Act

Question 1

What regulation is SAFE act?

Answer 1

Regulation G

Question 2

SAFE

Answer 2

Secure and Fair Enforcement of Mortgage Licensing

Question 3

HERA

Answer 3

HOUSING AND ECONOMIC RECOVERY ACT

Question 4

When was HERA started

Answer 4

2008

Question 5

Purpose of SAFE act

Answer 5

1. Licensing, Registering, and Educating Standards
2. Encourage responsible behavior with industry with mandates
3. Provide consumers with access to information to licensees /registrants (ex. denials, enforcement actions)
4. Facilitate collection and distribution between complaints between states

Question 6

What is the break down of the NMLS pre-education?

Answer 6

3 hrs: Federal Law and Regulation
2 hrs: Ethics
2 hrs: Non-traditional Mortgage Products
12 hrs: Electives
TOTAL 20 hrs

Question 7

How many hours of NMLS pre-education is required?

Answer 7

20 hrs

Question 8

What are the MU forms needed for NMLS licensing?

Answer 8

MU-1 Uniform Mortgage Lender/Mortgage Broker Form
MU-3 Uniform Mortgage Branch Office Form
MU-4 Uniform Individual Mortgage License/Registration and Consent Form

Question 9

What is the break down of the NMLS exam?

Answer 9

23% Federal Mortgage Law 
23% General Mortgage 
25% MLO Activities 
16% Ethics
13% Uniform State Content

Question 10

What are the Continuing Education Standard break down

Answer 10

3hrs: Federal Law
2hrs: Ethics
2hrs: Non-traditional Mortgage Products
1 hr: Elective
TOTAL: 8 hrs

Question 11

What does SAFE define and non-traditional mortgages?

Answer 11

Anything other than a 30 year fixed

Question 12

What is the purpose of the SAFE Act?

Answer 12

1. Licensing/registration and setting education standards
2. To encourage responsible behavior within the industry with mandates
3. Provide Consumer access to information about licensees/registrants, such as enforcement actions, denials, etc.
4. Facilitate collection and distribution between complaints between states

Question 13

What is Title V of the SAFE act?

Answer 13

HERA

Question 14

What is the max penalty under SAFE act?

Answer 14

$25,000 per incident BY the State