What is the s.a.f.e. mortgage licensing act?
The S.A.F.E Mortgage Licensing Act of 2008 (Secure and Fair Enforcement for Mortgage Licensing Act of 2008) was signed by President Bush on July 21, 2008.
In a nut shell, this law requires that Mortgage Brokerages, Mortgage Lenders and All Loan Originators be licenced by the state that they do business in. Some of the minimum requirements of Loan Originators are:
No felonies in the past 7 years
at least 20 hours of pre-licensing education
the Loan Originator must have continued education and have license renewed annually.
This act will make it mandatory for all loan originators to be monitored and put in to a nationwide system called the National Mortgage Licensing System. The education for pre-licensing includes Federal Law, Ethics and Lending standards. This act was imposed due to predatory lending practices and builds consumer confidence.