Which act creates the Secure and Fair Enforcement (SAFE) Act?

The Secure and Fair Enforcement (SAFE) Act is indeed created under the Home Equity Recovery Act (HERA). This act was enacted in 2008 with the goal of enhancing consumer protection and reducing fraud in the mortgage lending industry by establishing a regulatory framework for the licensing and registration of mortgage loan originators.

HERA specifically aimed to address the issues that contributed to the housing crisis by ensuring that individuals who originate mortgage loans are qualified and adhere to certain standards of practice. The SAFE Act is a critical component of HERA as it mandates that all states implement a system for the licensing and registration of mortgage loan originators, which helps to maintain a higher level of accountability in the industry.

Understanding the SAFE Act in the context of HERA is essential for recognizing the broader efforts aimed at improving oversight and consumer protection in the mortgage industry.