What is a key feature of the SAFE Act?

The SAFE Act, which stands for the Secure and Fair Enforcement for Mortgage Licensing Act, is fundamental in establishing a national standard for the licensing and regulation of mortgage loan originators. One of its primary features is that it sets forth requirements that mortgage loan originators must meet in order to obtain and maintain their licenses. This includes a minimum of pre-licensing education, passing federal and state examinations, background checks, and fulfilling continuing education requirements.

By standardizing these provisions across states, the SAFE Act aims to enhance the integrity of the mortgage lending process and ensure that mortgage loan originators possess the necessary knowledge and skills to serve borrowers effectively. This reinforces consumer protection and instills public confidence in the mortgage industry.

The other options, while related to different aspects of lending and borrower protections, do not encapsulate the primary purpose of the SAFE Act in establishing licensing standards for mortgage loan originators.