What is the primary purpose of the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act)?

The primary purpose of the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) is to enhance consumer protection and reduce fraud in the mortgage industry. This act establishes a national framework for the licensing and regulation of mortgage loan originators, aiming to ensure that those who assist consumers in obtaining mortgage loans are qualified and adhere to consistent standards of professionalism. By requiring licensing, background checks, and continuing education for mortgage loan originators, the SAFE Act helps to build trust in the mortgage lending process and safeguards consumers from potential deceptive practices.

Other options do not accurately reflect the core intention of the SAFE Act. Providing financial assistance or tax incentives for homebuyers and regulating interest rates are separate concerns within the broader context of housing finance and do not relate to the main objective of enhancing consumer protection and combating fraud in the lending process.