3 days prior to close you must send a written High Cost Mortgage Disclosure Homeownership Counseling is required prior to making the loan from a HUD approved counselor. No Balloon payment loans, Negative am, Prepayment Penalties, acceleration clauses ( unless a borrower commits fraud or is in default) , Paying a contractor directly from funds and of course, lenders are prohibited from encouraging a borrower to default.

The SAFE Mortgage Licensing Act of 2008 requires all licensed Mortgage Loan Originators to pass a test developed by NMLS (Nationwide Mortgage Licensing System And Registry). Each Loan Originator must take and pass the SAFE MLO Test in order to satisfy the SAFE test requirements of any single state jurisdiction.

The SAFE MLO national exam is made up of 120 multiple-choice items that cover 5 content areas: federal mortgage related laws (24% of the test), uniform state content (11%), general mortgage knowledge (20%), mortgage loan origination activities (27%) and ethics (18%).