Under the SAFE Act's definition, a mortgage loan originator is an individual who, for compensation or gain, does which of the following?

a.Takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan
b.Only delivers loan documents to a title company
c.Only performs clerical filing of completed applications
d.Only appraises the value of residential real estate

Explanation

The SAFE Act defines an MLO as an individual who, for compensation or gain (or expectation of it), takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan. Purely clerical or administrative staff, document couriers, and appraisers are generally not MLOs.

Law Reference: SAFE Act

Practice all 400 questions free — no signup required.

Related questions on this topic

Last reviewed: · editorial process

PrepPass Editorial Team · Verified against NMLS SAFE Mortgage Loan Originator National Test · How we review
Report