Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

What does the Secure and Fair Enforcement Act stand for?

1. SAFE Act

2. Securities Act of Fair Employment

3. Safety And Financial Education Act

4. State Act For Employment

The correct answer is: SAFE Act

The Secure and Fair Enforcement Act, commonly referred to as the SAFE Act, is a piece of legislation aimed primarily at enhancing consumer protection and reducing mortgage fraud. This act established a framework for the regulation of mortgage loan originators, requiring them to be licensed and registered with a nationwide registry. The SAFE Act mandates that these loan originators undergo background checks, and that they obtain proper training to ensure they understand the laws and regulations that govern mortgage practices. The act ensures that individuals involved in residential mortgage lending meet certain standards of professionalism and competency. This helps build trust in the financial system and enhances the safety of financial transactions involving home loans. Overall, the SAFE Act contributes to a more transparent and accountable lending environment, which benefits both consumers and lenders. The other options do not accurately reflect the intent or focus of the SAFE Act. The Securities Act of Fair Employment and the State Act For Employment do not have any relevance in the context of mortgage lending or originator regulation, while the Safety And Financial Education Act does not relate specifically to the standards for mortgage loan originators.