What does the SAFE Act primarily establish?

The SAFE Act, or the Secure and Fair Enforcement for Mortgage Licensing Act, primarily establishes minimum standards for the licensing and registration of mortgage loan originators. This legislation aims to enhance the integrity and accountability of the mortgage industry by ensuring that individuals who originate mortgage loans are properly qualified.

By setting these baseline standards, the SAFE Act seeks to protect consumers and promote public confidence in the mortgage lending process. The act mandates that states implement their own licensing requirements that comply with federal standards, ensuring that mortgage loan originators have met specific educational, testing, and background check criteria.

This focus on licensing is crucial because it helps reduce the chances of fraud and requires a level of professionalism and expertise in a field that is integral to the financial system and individual homeownership. The SAFE Act does not directly address regulations regarding consumer credit disclosures, kickbacks, or account-opening individuals, which is why those options are not correct in this context. The act is primarily concerned with the professional qualifications of those involved in mortgage lending, making option D the accurate choice.