Which federal act regulates mortgage loan originators?

The Secure and Fair Enforcement for Mortgage Licensing Act, commonly referred to as the SAFE Act, is the federal law that specifically regulates mortgage loan originators. This act was passed to establish a nationwide licensing and registration system for mortgage loan originators to promote accountability and transparency in the mortgage industry. It aims to protect consumers by ensuring that individuals engaged in mortgage origination meet certain standards of professionalism and education.

Under the SAFE Act, mortgage loan originators are required to be licensed in the states where they operate, and states must adhere to specific guidelines for this licensing process. The act also established the Nationwide Mortgage Licensing System (NMLS), which streamlines the process of tracking and managing mortgage professionals.

Other acts listed in the choices—such as the Fair Housing Act, Truth in Lending Act, and Real Estate Settlement Procedures Act—focus on different aspects of mortgage lending and consumer protection, but they do not specifically address the regulation of mortgage loan originators like the SAFE Act does.