Final answer:
The SAFE Act refers to the Secure and Fair Enforcement for Mortgage Licensing Act of 2008, which sets standards for the licensing of mortgage loan originators to protect consumers and reduce fraud.
Step-by-step explanation:
The SAFE Act, formally known as the Secure and Fair Enforcement for Mortgage Licensing Act of 2008, was established to enhance consumer protection and reduce fraud by setting minimum standards for licensing and registration of mortgage loan originators. This act obligates states to establish licensing requirements for loan originators and mandates the creation of the Nationwide Mortgage Licensing System and Registry (NMLS) for the residential mortgage industry. It requires loan originators to pass a written qualified test, to undergo background checks, and to take continuing education courses.
The SAFE Act is not to be confused with other similarly abbreviated legislation focused on various aspects of safety, security, or health, such as the Hate Crimes Prevention Act or measures related to national defense and communication security.