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Under the SAFE Act definition, which factor is NOT required for someone to be considered a mortgage loan originator?

Correct Answer

D) Working for a state-licensed mortgage company

The SAFE Act definition of MLO focuses on the activities performed (taking applications, offering or negotiating terms) and receiving compensation, regardless of the type of company. MLOs can work for various entities including banks, credit unions, and mortgage companies.

Answer Options
A
Taking a residential mortgage loan application
B
Receiving compensation or gain for the activity
C
Having direct contact with the borrower
D
Working for a state-licensed mortgage company

Why This Is the Correct Answer

The SAFE Act definition of MLO focuses on the activities performed (taking applications, offering or negotiating terms) and receiving compensation, regardless of the type of company. MLOs can work for various entities including banks, credit unions, and mortgage companies.

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