What is the SAFE Mortgage Licensing Act?
SAFE stands for Secure and Fair Enforcement for Mortgage Licensing Act of 2008. The law went into effect July 2008. It is Title V of a 700-page piece of legislation entitled the Housing and Economic Recovery act of 2008. The Act is designed to protect consumers by requiring states to use uniform standards for licensing individuals wanting to serve as loan originators. Uniform standards include registry in a national database of loan originators, education and testing requirements, and screening individuals with background checks for past felonies and demonstrated financial responsibility.
