What is the primary purpose of the SAFE Act?

The primary purpose of the SAFE Act, which stands for the Secure and Fair Enforcement for Mortgage Licensing Act, is to enhance consumer protection and reduce fraud in the mortgage industry. This legislation was enacted to establish a federal framework for the licensing and registration of mortgage loan originators, improving the quality and accountability of individuals who facilitate loans. By requiring that mortgage loan originators be licensed and meet specific educational and criminal background standards, the act aims to protect consumers from deceitful practices and ensure they work with qualified professionals.

The other options do not accurately capture the essence of the SAFE Act. For instance, while simplifying the mortgage application process and promoting higher loan limits may be beneficial, they do not fall within the primary focus of the act. The elimination of loan origination fees is not a goal of the act, as fees can vary widely based on the lender, the market, and the specific loans involved. Thus, option A effectively aligns with the SAFE Act’s core objective of consumer protection and fraud reduction in the mortgage industry.