Which entities enforce the SAFE Act?

Which entities enforce the SAFE Act?

• A. Federal Reserve
• B. NMLS and state regulators
• C. Consumer Financial Protection Bureau
• D. Department of Housing and Urban Development

Answer: (B)

The SAFE Act creates a nationwide licensing framework for mortgage loan originators, and enforcement of that framework is carried out by state regulators in coordination with the Nationwide Multistate Licensing System & Registry (NMLS). States license and supervise mortgage loan originators, set continuing education and background-check requirements, and handle disciplinary actions. The NMLS serves as the central registry and information system that supports these state efforts and enables multi-state sharing of licensing data. While agencies like the Federal Reserve, the Consumer Financial Protection Bureau, and the Department of Housing and Urban Development regulate related aspects of financial services and housing policy, they do not enforce the SAFE Act’s mortgage licensing regime.

The SAFE Act creates a nationwide licensing framework for mortgage loan originators, and enforcement of that framework is carried out by state regulators in coordination with the Nationwide Multistate Licensing System & Registry (NMLS). States license and supervise mortgage loan originators, set continuing education and background-check requirements, and handle disciplinary actions. The NMLS serves as the central registry and information system that supports these state efforts and enables multi-state sharing of licensing data. While agencies like the Federal Reserve, the Consumer Financial Protection Bureau, and the Department of Housing and Urban Development regulate related aspects of financial services and housing policy, they do not enforce the SAFE Act’s mortgage licensing regime.