The Secure and Fair Enforcement for Mortgage Licensing Act — federal law requiring all mortgage loan originators to be licensed through NMLS.
Full Definition
The SAFE Act was enacted in 2008 to establish minimum national standards for mortgage loan originator (MLO) licensing. It requires all MLOs to register through NMLS (Nationwide Multistate Licensing System & Registry), pass background checks, complete pre-license education (20 hours federally mandated plus additional state hours), pass the NMLS SAFE exam, and complete annual continuing education (8 hours). MLOs working for federally regulated banks are registered (not licensed) through NMLS. MLOs working for non-bank lenders, mortgage brokers, or independent companies must hold an active state license. The SAFE Act was designed to reduce fraud and increase consumer protection following the mortgage crisis.
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