SAFE, or Out? Who's In, Who's Not Under the SAFE Act

It’s been four years since the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 was signed into law. The SAFE Act encouraged states to establish a statutory framework for licensing “loan originators” — that is, individuals who take residential mortgage loan applications and offer or negotiate loan terms for compensation or gain. In enacting the SAFE Act, Congress sought to address non-uniform state licensing laws, which were seen as contributing to the mortgage and foreclosure crisis.

Every state complied with the SAFE Act by enacting licensing laws meeting the minimum requirements of the SAFE Act. Additionally, every state transitioned its loan originator licensing platform to the Nationwide Mortgage Licensing System, a web-based system created and maintained by the American Association of Residential Mortgage Regulators and the Conference of State Bank Supervisors.