Uniform State Test (UST) · 11% of the SAFE examhard
Correct answer: A counselor who contacts multiple lenders on a specific borrower's behalf, compares loan offers, and advises the borrower on which loan product to select and on what terms
The SAFE Act's licensing requirement is activity-based. An individual who negotiates mortgage terms, assists a borrower in selecting a loan product, and contacts lenders on the borrower's behalf is performing activities that fall within the MLO definition — regardless of whether the individual works for a nonprofit. The counselor in "A counselor who provides referrals to licensed MLOs..." is functionally acting as a mortgage broker. A homebuyer education instructor (A) discussing general processes is not originating loans. A counselor reviewing post-closing documents (B) is performing educational support after origination is complete. A counselor making referrals without discussing specific loan products (D) is performing a referral function that does not require licensure under the SAFE Act.
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