Which statement accurately describes a requirement of the SAFE Act for Mortgage Loan Originators?

• A. They must disclose all revenue sharing with real estate brokers.
• B. They must be licensed or registered and meet education and background checks.
• C. They must be licensed only after five years of experience.
• D. They must be licensed with no ongoing education required.

Answer: (B)

The essential idea here is that the SAFE Act creates nationwide standards for who can originate mortgage loans by requiring proper licensing, plus education and background checks. Mortgage Loan Originators must be licensed or registered and be tracked in the NMLS, showing they’ve met the required education and background-screening criteria before they can legally originate loans. After they’re licensed, they must maintain those qualifications through ongoing education.

This focus on licensing or registration plus education and background checks is what protects consumers by ensuring originators meet minimum standards and stay current. The other statements don’t fit the Act: it doesn’t require disclosing revenue sharing with real estate brokers, there isn’t a five-year experience prerequisite, and ongoing education is indeed required to keep the license.