Which of the following acts requires mortgage loan originators to complete annual continuing education to satisfy the requirement for licensure?

Which of the following acts requires mortgage loan originators to complete annual continuing education to satisfy the requirement for licensure?
A . The SAFE Act
B . The Dodd-Frank Act
C . The Truth in Lending Act (TILA)
D . The Equal Credit Opportunity Act

View Answer

Answer: A

Explanation:

The SAFE Act (Secure and Fair Enforcement for Mortgage Licensing Act) requires all state-licensed mortgage loan originators (MLOs) to complete annual continuing education (CE) as part of their licensure requirements. This includes 8 hours of CE, covering topics like federal law, ethics, and nontraditional mortgage products.

The goal of the SAFE Act is to ensure MLOs are knowledgeable about regulations, ethical practices, and current mortgage industry trends. Failing to complete the required education can result in a license being suspended or revoked.

Other Acts:

The Dodd-Frank Act (B) sets broader regulations, such as those related to mortgage loan origination

compensation.

TILA (C) governs disclosures and loan terms but does not mandate CE.

ECOA (D) focuses on preventing discrimination in credit but does not require CE.

References:

SAFE Act, 12 USC §5101

NMLS Continuing Education Requirements