Under the SAFE Act, which of the following individuals would be considered a mortgage loan originator?
Correct Answer
C) An individual who takes residential mortgage loan applications for compensation
The SAFE Act defines an MLO as an individual who takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan for compensation or gain. Simply referring clients or processing paperwork does not constitute MLO activities.
Why This Is the Correct Answer
The SAFE Act defines an MLO as an individual who takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan for compensation or gain. Simply referring clients or processing paperwork does not constitute MLO activities.
More UST Questions
If a state regulatory authority finds violations during an examination, what factors typically influence the severity of enforcement action?
Under the SAFE Act, an individual who works for a federally chartered bank and takes mortgage applications must:
An MLO under investigation claims that certain requested documents are protected by attorney-client privilege because they were prepared in consultation with legal counsel. How should the state regulator respond?
Which scenario represents the MOST serious violation of appraisal independence requirements?
An MLO's license is suspended for 6 months, but after 3 months, the MLO demonstrates completion of remedial actions. Can the regulator lift the suspension early?
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During the temporary authority period, an MLO discovers they need additional continuing education credits to meet the new state's requirements. When must these be completed?
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Which of the following would disqualify an MLO from receiving temporary authority when moving to a new state?