Uniform State Test (UST) · 11% of the SAFE exameasy
Correct answer: No — in Alabama, an MLO must be sponsored by a licensed mortgage company; independent origination is not permitted
In Alabama, MLOs must be sponsored by a licensed mortgage company to originate loans. An individual cannot simply obtain an MLO license and begin originating independently — they must be employed by or contracted through a licensed mortgage broker or lender. If an MLO leaves their sponsoring company, their license becomes inactive and they cannot originate until a new sponsor files the appropriate paperwork through NMLS. This sponsorship requirement exists in most states and ensures that MLOs operate under the supervision and compliance framework of a licensed entity. "Yes — any individual with an NMLS license can origin..." is incorrect because individual licensing alone is insufficient. "Yes — but only if she obtains both an individual MLO..." is wrong because there is no dual-license path for independent origination. "No — Alabama does not allow newly licensed MLOs to o..." fabricates a waiting period that does not exist in Alabama law.
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