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Compliance Audits

The Secure and Fair Enforcement for Mortgage Licensing (SAFE) Act applies to all financial institutions that offer real estate-secured loans to consumers, such as first mortgage loans, second mortgages, home equity loans, and land loans.

While a SAFE Act audit is annually required by law, testing more frequently may be necessary if the Credit Union has a frequent or large personnel turnover, or if the Credit Union has implemented new delivery methods such as online mortgage loan applications or online information gathering.

Review of Internal Policies and Procedures

Our SAFE Act compliance auditors review the Credit Union's policies and procedures documentation to ensure that the internal processes comply with regulations.

This examination also considers the size and complexity of the Credit Union's mortgage lending activity, and the exam results may offer guidance for change to internal controls to be more appropriate with the scope of the Credit Union's mortgage lending.


Review of Mortgage Loan Originator Activities

Our auditors review the personal information and training of the Credit Union's mortgage loan originators—as well as checking for timely registrations and updates. We answer questions such as:

  • Are those employees that are defined as "mortgage loan originators" (MLOs) registered before they perform any MLO duties?

  • Does the financial institution provide SAFE Act training to mortgage lending staff before registration?

  • When it's time to review, does the existing staff review the requirements before renewal?

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