Mortgage Loan Originator (MLO) Licensing Practice Test

Which of the following is NOT a function of a loan originator?

1. Soliciting mortgage loans

2. Negotiating existing loan sales

3. Providing credit counseling services

4. Accepting mortgage loan applications

The correct answer is: Providing credit counseling services

The correct answer is identified as providing credit counseling services, which is not typically a function of a loan originator. Loan originators primarily focus on the process of facilitating mortgage loans for clients, which includes soliciting mortgage loans, accepting mortgage loan applications, and may involve negotiating terms related to loans, but they do not generally engage in the broader scope of credit counseling. Credit counseling involves a comprehensive review of a consumer’s financial situation, including budgeting assistance and debt management strategies, which goes beyond the specific duties of a loan originator. These professionals are primarily responsible for helping clients navigate the mortgage application process, determining suitable loan products, and ensuring that necessary documentation is completed and submitted. As such, while lending practices may intersect with financial education, credit counseling as a dedicated service falls outside the purview of a loan originator's typical responsibilities.