What are the most important functions of the Secure and Fair Enforcement (SAFE) Act?

“SAFE Act”stands for Secure and Fair Enforcement for Mortgage Licensing Act of 2008. It established a national licensing and registration system for defining the role of residential mortgage loan originators (MLOs). 

Further, the Act requires MLOs to obtain and maintain either federal registration or a state license and registration. 

The Nationwide Mortgage Licensing System and Registry (NMLS) takes care of both federal and state registrations. 

The SAFE Act improves information flow between regulators and enhances consumer protection. It also tracks the accountability of MLOs and conducts the SAFE mortgage loan originator national test for aspiring MLOs. 

SAFE also supports anti-fraud measures by offering consumers free access to information about MLOs. It includes their employment history and any penal or enforcement actions taken against them. 

The NMLS Unique Identifier (NMLS Number) assigned to each MLO registrant helps SAFE to take these measures.

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