SAFE Act

Question 1

What is the SAFE Act?

Answer 1

The Act is an effort to regulate the mortgage industry on a national level after 2008. The S.A.F.E. Act established minimum standards for licensure, requiring mortgage loan originators be either state-licensed or federally registered.

Question 2

What does SAFE stand for?

Answer 2

Secure and Fair Enforcement for Mortgage Licensing Act

Question 3

What must all states consider when licensing loan originators?

Answer 3

• Background checks
• Criminal history
• Financial responsibility
• Pre-licensing education
• Testing
• Continuing education

Question 4

In regards to criminal history what must a license applicant not have?

Answer 4

• A felony conviction in the seven years prior to application, or trust or money laundering.
• A financial- or fraud-related felony at any time; such a felony might include fraud, dishonesty, breach of

Question 5

In regards to pre-licensing education what must a license applicant complete?

Answer 5

A license applicant must complete at least 20 hours of pre-licensing education, which must include:

• Three hours of federal law
• Three hours of ethics coursework, and
• Two hours of coursework related to nontraditional mortgage products

Question 6

In regards to testing what must a license applicant know?

Answer 6

• They must score a 75% or better
• If you fail you need to wait 30 days before retaking
• If you fail 3 times you need to wait 6 months before retaking

Question 7

In regards to continuing education what must a license applicant complete?

Answer 7

A licensee is required to take a minimum of eight hours of continuing education each year, which must include:

• Three hours of federal law
• Two hours of ethics instruction, and
• Two hours of coursework on nontraditional mortgage products