The SAFE Act was created by which statute?

The SAFE Act was created by which statute?

• A. Dodd-Frank Wall Street Reform and Consumer Protection Act
• B. Housing and Economic Recovery Act
• C. Truth-in-Lending Act
• D. Real Estate Settlement Procedures Act

Answer: (B)

The SAFE Act was created by the Housing and Economic Recovery Act of 2008. This statute established a nationwide framework for licensing mortgage loan originators, requiring states to license and register individuals who originate mortgage loans, and it set requirements for background checks, education, and continuing education to raise professional standards and protect consumers after the subprime crisis. Dodd-Frank is a broader reform enacted later that reshaped financial regulation and created the CFPB, but it did not originate the SAFE Act. Truth in Lending Act and Real Estate Settlement Procedures Act govern disclosure and settlement practices, not the creation of the SAFE Act.

The SAFE Act was created by the Housing and Economic Recovery Act of 2008. This statute established a nationwide framework for licensing mortgage loan originators, requiring states to license and register individuals who originate mortgage loans, and it set requirements for background checks, education, and continuing education to raise professional standards and protect consumers after the subprime crisis.

Dodd-Frank is a broader reform enacted later that reshaped financial regulation and created the CFPB, but it did not originate the SAFE Act. Truth in Lending Act and Real Estate Settlement Procedures Act govern disclosure and settlement practices, not the creation of the SAFE Act.