Which of the following is a primary goal of the SAFE Act?

The primary goal of the SAFE Act, or the Secure and Fair Enforcement for Mortgage Licensing Act, is to establish uniform licensing standards for mortgage loan originators (MLOs). This legislation was enacted to enhance consumer protection and reduce fraud in the mortgage industry by requiring MLOs to meet specific licensing requirements. By creating a standard process for licensing across states, the SAFE Act ensures that MLOs possess the necessary qualifications and adhere to ethical practices, contributing to a more transparent and accountable mortgage lending process.

The focus on uniformity means that whether an MLO is working in North Carolina or any other state, they must meet the same baseline criteria, which promotes professionalism within the industry. This standardization is crucial in fostering trust between consumers and financial institutions as it helps guarantee that MLOs are competent and knowledgeable about the products they offer.