A paid employee of a Louisiana mortgage lender offers and negotiates residential mortgage loan terms but does not take applications. Assume no statutory exclusion applies. Does the employee's activity meet the MLO definition in R.S. 6:1083(10)?
Correct Answer
A) Yes; compensated offering or negotiating of residential mortgage terms is enough
R.S. 6:1083(10) uses alternative activities: taking a residential mortgage application or offering or negotiating its terms for compensation or expected gain. Negotiating alone can meet the definition. It does not require personally funding the loan, performing both activities, or reaching a five-loan threshold. Source: https://www.legis.la.gov/legis/Law.aspx?d=105685
Why This Is the Correct Answer
Louisiana Residential Mortgage Lending Act defines MLO as an individual who for compensation or expected compensation takes a residential mortgage application or offers or negotiates terms of a. This is correct because Louisiana Residential Mortgage Lending Act defines mortgage loan originator as an individual who for compensation or expected compensation takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan.
Why the Other Options Are Wrong
Option B: No; the employee must both take applications and negotiate terms
Rely on prior mortgage experience instead of the a supervisory file note and checks application and licensing qualifications rule. is not correct because the state rule supports: Louisiana Residential Mortgage Lending Act defines MLO as an individual who for compensation or expected compensation takes a residential mortgage application or offers or negotiates terms of a.
Option C: No; only a person who actually funds the loan meets the definition
Treat a record-retention checklist as complete without the required state condition. is not correct because the state rule supports: Louisiana Residential Mortgage Lending Act defines MLO as an individual who for compensation or expected compensation takes a residential mortgage application or offers or negotiates terms of a.
Option D: Yes, but only after the employee closes five loans in one year
Postpone the correction until a later complaint or examination. is not correct because the state rule supports: Louisiana Residential Mortgage Lending Act defines MLO as an individual who for compensation or expected compensation takes a residential mortgage application or offers or negotiates terms of a.
Memory Technique
Louisiana: a supervisory file note and checks application and licensing qualifications -> use the exact state rule in the explanation.
Exam Tip
Match the Louisiana fact pattern to the specific a supervisory file note and checks application and licensing qualifications rule; do not answer from a generic state or federal assumption.
Common Mistakes to Avoid
- -Treating a Louisiana a supervisory file note and checks application and licensing qualifications rule as a generic national mortgage rule
- -Choosing a familiar licensing answer that is not supported by the official authority
- -Ignoring the exact condition stated in the explanation
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