Chapter 1
Federal Mortgage Laws and Consumer Protection Regulations
Course: Safe Mlo Prep
Subject: Safe Mlo Prep
Chapter: Safe Act Nmls Licensing And State Mortgage Regulation
OVERVIEW
State license laws define who must be licensed, how to obtain a license, and the conditions under which a license may be denied, suspended, or revoked. For the NMLS exam, the focus is on rules that are uniform across states — the Uniform State Content (USC) component of licensing law.
- Who Needs an MLO License
Generally any individual who performs the following activities for compensation must be licensed:
- Takes a residential mortgage loan application
- Offers or negotiates the terms of a residential mortgage loan
- Solicits borrowers for residential mortgage loans
- Who Does NOT Need an MLO License — Common Exemptions
- Real estate attorneys performing services incidental to their legal practice — in some states
- Sellers carrying back purchase-money mortgages — a seller who finances the buyer directly when selling their own property
- Certain nonprofit organisations providing housing assistance
- Employees of government agencies originating loans in their official capacity
- Registered bank employees — they register rather than license