SAFE Act Policy and Procedures

Description

The SAFE Act Policy and Procedures outlines the requirements for a mortgage company to ensure they are in compliance with the regulations for licensing of mortgage professionals. The Safe and Fair Enforcement for Mortgage Licensing Act (SAFE Act) establishes the licensing requirements for mortgage loan originators (MLOs). This policy defines which mortgage loan activities require licensure and outlines the procedures mortgage lenders must follow to ensure that only properly licensed individuals engage in those activities.

The policy requires management to actively monitor compliance with both initial licensing and annual renewal requirements. It also details the steps necessary to maintain oversight through the Nationwide Multistate Licensing System (NMLS), ensuring that all MLOs remain in good standing.

The consequences of engaging in mortgage loan activities without proper licensure—and the risks of failing to maintain a valid license—are clearly addressed.