Which act regulates and oversees the SAFE Act?

Which act regulates and oversees the SAFE Act?

• A. Dodd-Frank Act
• B. Housing and Economic Recovery Act
• C. Secure and Fair Enforcement Act
• D. Truth in Lending Act

Answer: (B)

The idea being tested is that the SAFE Act isn’t a stand-alone rulebook; it was created as part of a larger statute to establish a nationwide licensing framework for mortgage loan originators. Specifically, the Secure and Fair Enforcement for Mortgage Licensing Act is included inside the Housing and Economic Recovery Act of 2008. That act authorizes and oversees the licensing system (via states and the nationwide registry, NMLS) used to regulate MLOs. So, the act that regulates and oversees the SAFE Act is the Housing and Economic Recovery Act. The other acts address different aspects of mortgage regulation—Dodd-Frank broadens consumer financial reform and created the CFPB, while the Truth in Lending Act focuses on disclosure requirements—not on establishing the mortgage licensing framework for originators.

The idea being tested is that the SAFE Act isn’t a stand-alone rulebook; it was created as part of a larger statute to establish a nationwide licensing framework for mortgage loan originators. Specifically, the Secure and Fair Enforcement for Mortgage Licensing Act is included inside the Housing and Economic Recovery Act of 2008. That act authorizes and oversees the licensing system (via states and the nationwide registry, NMLS) used to regulate MLOs. So, the act that regulates and oversees the SAFE Act is the Housing and Economic Recovery Act. The other acts address different aspects of mortgage regulation—Dodd-Frank broadens consumer financial reform and created the CFPB, while the Truth in Lending Act focuses on disclosure requirements—not on establishing the mortgage licensing framework for originators.