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

The primary objective of the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) is to enhance consumer protection and reduce fraud in the mortgage industry. The SAFE Act was enacted to establish a nationwide licensing and registration system for mortgage loan originators, which ensures that those who engage in mortgage lending practices meet specific educational, ethical, and operational standards. This framework aims to increase transparency and accountability, making it easier for consumers to verify the credentials of loan originators. By requiring licensing and ongoing education, the SAFE Act seeks to protect consumers from fraudulent practices and promote fair lending activities.

The other options do not align with the main objectives of the SAFE Act. For instance, promoting the growth of mortgage companies or increasing interest rates on loans does not directly relate to the enhancement of consumer protection. Additionally, while the SAFE Act aims to reduce costs related to fraud, it does not eliminate all mortgage fees, as this would not be feasible given the various necessary costs incurred in the mortgage process.