A mortgage loan originator (MLO) cannot be approved for licensure if the applicant has:

A mortgage loan originator (MLO) cannot be approved for licensure if the applicant has:
A . been convicted of a felony within the past seven years.
B . had an MLO license suspended in any governmental jurisdiction.
C . taken and failed the SAFE MLO National Test three times within the last year.
D . never been licensed or registered as an MLO in any governmental jurisdiction.

View Answer

Answer: A

Explanation:

Under the SAFE Act, a mortgage loan originator (MLO) cannot be approved for licensure if they have been convicted of a felony within the past seven years, or at any time if the felony involved fraud, dishonesty, breach of trust, or money laundering. This provision ensures that individuals with serious criminal backgrounds are not permitted to operate as MLOs.

Other factors, such as failing the SAFE MLO test (C) or having never been licensed (D), do not automatically disqualify an applicant from obtaining an MLO license.

References:

SAFE Act, 12 USC §5104

NMLS Licensing Requirements