40min | Credits: 1.00 CRCM
Following the collapse of the housing market in the United States and the resulting global economic crisis in the late 2000s, Congress sought to discover causes for the crisis and create solutions to prevent a similar crisis from happening again. The focus of the resulting regulations was on reducing the level of fraud in the mortgage lending process and on increasing the level of consumer protection to guard against further industry-wide violations.
This course explains how the Secure and Fair Enforcement for Mortgage Licensing (SAFE) Act establishes a licensing and registration system for residential mortgage loan originators (MLOs) that includes education, testing, and background checks to ensure that person’s suitability to provide this service.
Audience: Compliance and risk management professionals including compliance managers, officers, and other team members whose primary role is within the compliance function at their financial institution; bank examiners, bank regulators, and auditors.
After completing this course, students will be able to:
- Describe the background, purpose, and basic requirements of the SAFE Act and an exception to the registration requirement
- List the two job functions that require registration as a mortgage loan originator (MLO) and activities exempt from MLO registration
- Explain the registration process for MLOs and when an employee must update MLO information
- Describe the requirements for using an MLO unique identifier
Created: May 2022