Chap 3 SAFE ACT

Question 1

What is SAFE Act

Answer 1

Secure and Fair Enforcement of Mortgage Act (Regulation G) It was enacted right after 2008 crisis.
This act mandated a nationwide registration and licensing system for MLOs

Question 2

License?

Answer 2

It prohibits individuals from conducting any type of transaction that deals with residential mortgages/loans without first registering and maintaining the license.

Question 3

Do you need unique identifier

Answer 3

For individuals who are employees of a covered financial agency, one needs to have a federally issued unique identifier and be registered as a registered mortgage loan originator

All other people need to register and have a state license to function as a licensed mortgage loan originator.

Question 4

Aim of SAFE Act

Answer 4

1. Improving and aggregating information flow to and between requlators.
2. Ensuring that there is greater account ability and tracking of MLOs
3. Enhance consumer protections
4. Boost anti-fraud measures
5. Provide borrowers and potential home buyers with all necessary information at no cost regarding the conduct, employment history, all past enforcement actions against mortgage loan officers