What is the focus of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act)?

The Secure and Fair Enforcement for Mortgage Licensing Act of 2008, commonly known as the SAFE Act, primarily focuses on establishing a comprehensive licensing and registration framework for mortgage loan originators. This act aims to enhance consumer protection and reduce fraud in the mortgage lending process by requiring individuals who originate loans to be licensed and registered in a national database. By setting these standards, the SAFE Act helps ensure that mortgage loan originators meet specific qualifications, adhere to certain ethical standards, and participate in ongoing education. This measure aims to build greater trust in the mortgage industry and improve the overall integrity of the lending process.

Other options relate to aspects of the mortgage and lending industry but do not capture the core intent of the SAFE Act. For example, while there are regulations that concern predatory lending practices, and the act contributes indirectly to preventing such issues through increased accountability, its primary focus is on the licensing and registration of mortgage loan originators.