What does the SAFE Act require from mortgage loan originators?

The SAFE Act, or the Secure and Fair Enforcement for Mortgage Licensing Act, establishes important guidelines aimed at enhancing oversight of the mortgage industry and protecting consumers. One of its primary requirements is for mortgage loan originators to obtain proper licensing and registration.

This licensing process involves meeting specific education and experience criteria, passing a national examination, and undergoing a background check, which includes a review of criminal history. The goal of these requirements is to ensure that mortgage loan originators are qualified professionals who adhere to industry standards and regulations. By mandating licensing and registration, the SAFE Act aims to create a more transparent and accountable mortgage lending environment, ultimately enhancing consumer protection and trust in the lending process.

While the other options touch on aspects of the mortgage process— such as borrower pre-qualification and fee disclosures—these are not mandated by the SAFE Act, focusing instead on licensure as a means of regulating who can operate in the mortgage lending space.