Uniform State Content (SAFE Act)Question 357 of 400
What is the primary purpose of the federal SAFE Act?
a.To set minimum standards for the licensing and registration of mortgage loan originators and increase consumer protection
b.To guarantee mortgage loans made to first-time homebuyers
c.To set the interest rates that lenders may charge on home loans
d.To provide federal down-payment assistance to low-income borrowers
Explanation
The SAFE Act (Secure and Fair Enforcement for Mortgage Licensing Act of 2008) was enacted to enhance consumer protection and reduce fraud by establishing minimum national standards for licensing and registering mortgage loan originators. It does not guarantee loans, set interest rates, or provide down-payment assistance.
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