When the US economy crashed in 2008, the aftermath shone a light on the existing problems within the residential mortgage industry. The collapse was caused in part by massive spending against loans that could never be paid back, and many people lost their homes as a result. Those who were able to keep their homes lost a great deal of value in their property, and many have not fully recovered even 11 years later. The Secure and Fair Enforcement for Mortgage Licensing Act, or SAFE Act, was created to help prevent another such collapse in the future and protect consumers from fraud.
The primary goal of the SAFE Act is to protect consumers against fraudulent mortgage loan originators and policies by providing greater transparency into those handling the loan process. Consumers now have easy access to background information on all loan originators, and those originators are more closely monitored