SAFE Act Requirements

The purpose behind the SAFE Act is multi-faceted, but in a nutshell, it seeks to track mortgage loan originators (MLOs), enhance MLO accountability, improve consumer protection, reduce mortgage loan fraud, and provide access to certain MLO background information. To accomplish these goals, the SAFE Act requires MLOs to be licensed and registered using the Nationwide Mortgage Licensing System (NMLS). MLO information must be updated, as applicable, and renewed annually. In general, financial institutions must:

1. Register and obtain a unique identifier;
2. Ensure any employees who act as MLOs register; obtain a unique identifier; maintain that registration, and,
3. Implement written policies and procedures to help ensure compliance, including an independent test at least annually.

Jerod explains more in the video.