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What was the primary purpose of the SAFE Act when it was enacted?

Uniform State Test (UST) · 11% of the SAFE exameasy

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Correct answer: To create minimum standards for licensing MLOs, reduce mortgage fraud, and increase consumer confidence in the mortgage industry

The SAFE Act (Secure and Fair Enforcement for Mortgage Licensing Act) was enacted to create minimum standards for licensing and regulation of mortgage loan originators, reduce fraud, and bolster consumer confidence in the mortgage industry. "To create minimum standards for licensing MLOs, redu..." is incorrect — the SAFE Act has nothing to do with a federal tax on origination fees. "To standardize interest rates across all states and..." is incorrect because the SAFE Act preserved state regulatory authority and did not transfer it to the federal government. "To transfer regulatory authority over mortgage lendi..." is incorrect; the SAFE Act does not standardize interest rates.

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