The purpose of the SAFE Act is to protect consumers and reduce fraud in the residential mortgage loan industry. It increases accountability and allows for tracking of Mortgage Loan Originators (MLOs) by assigning unique identifiers (NMLSR #’s) and storing certain information within the Nationwide Mortgage Licensing System and Registry (NMLSR).
The SAFE Act requires that an annual, independent audit be conducted to test for compliance. The audit should look at the various SAFE Act requirements such as policies/procedures, registration status/updates, and use of unique identifiers. The audit may be conducted internally or externally as long as it is truly independent.
Jerod explains more in the video.
Published 2026/10/19