Offering or negotiating the terms of a loan includes which of the following actions?

Offering or negotiating the terms of a loan includes which of the following actions?
A . Providing general explanations or descriptions in response to a consumer’s inquiry
B . Making an underwriting decision about whether an applicant qualifies for a loan
C . Presenting particular loan terms to an applicant verbally, in writing, or otherwise
D . Arranging the loan closing or other aspects of the loan process

View Answer

Answer: C

Explanation:

Under the SAFE Act, offering or negotiating the terms of a loan includes presenting specific loan terms to an applicant, whether verbally, in writing, or through any other communication method. This activity directly involves discussing or negotiating loan details like interest rates, loan amounts, and repayment terms, which requires licensure as a mortgage loan originator (MLO).

Providing general explanations (A) and arranging loan closings (D) do not require an MLO license because they do not involve negotiating or offering specific loan terms.

Making underwriting decisions (B) is also a separate activity not considered "offering or negotiating" loan terms.

References:

SAFE Act, 12 USC §5101

NMLS Guidelines on MLO licensure requirements