The National Mortgage Licensing System (NMLS) operates under which act?

The National Mortgage Licensing System (NMLS) operates under the SAFE Mortgage Licensing Act. This act was designed to enhance consumer protection and reduce fraud by establishing a nationwide framework for mortgage licensing and registration. It established the NMLS to ensure that all mortgage loan originators meet consistent standards, including educational requirements, testing, and background checks, thereby promoting accountability and transparency within the mortgage industry.

Understanding the connection between the SAFE Act and the NMLS is essential for recognizing how regulatory bodies ensure the integrity of the mortgage lending process. This act serves as the foundational legislation that facilitates the licensing and regulation of mortgage professionals across the United States. The other acts listed do not specifically establish the NMLS or its operational framework, as they relate to other aspects of financial regulation or consumer protection in different contexts.