A real estate agent receives compensation for referring clients to a specific mortgage lender. Under the SAFE Act, when would this agent be considered a mortgage loan originator?
Correct Answer
B) If the agent discusses specific loan programs with the referred clients
Under the SAFE Act, an individual becomes an MLO when they take applications, offer or negotiate loan terms, or counsel consumers about loan terms. Simply receiving referral compensation does not trigger MLO requirements, but discussing specific loan programs would constitute offering or counseling about loan terms.
Why This Is the Correct Answer
Under the SAFE Act, an individual becomes an MLO when they take applications, offer or negotiate loan terms, or counsel consumers about loan terms. Simply receiving referral compensation does not trigger MLO requirements, but discussing specific loan programs would constitute offering or counseling about loan terms.
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During a state examination, what information about consumers must an MLO provide to examiners?
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A mortgage broker's administrative assistant answers phones and schedules appointments but never discusses loan terms. However, she occasionally tells callers 'our rates start around 6%' when asked. Under the SAFE Act, this assistant: