Which of the following is not typically a responsibility of the mortgage loan originator?

Asked by: Harmony Dickinson  |  Last update: July 3, 2025
Score: 4.2/5 (40 votes)

Explanation: The statement that is NOT true about the financial responsibility of a mortgage loan originator is (D) A mortgage loan originator must always have his or her own surety bond in an amount that reflects the dollar value of loans originated in the previous year.

Which of the following is not the responsibility of the originator?

Answer and Explanation:

The responsibilities of the originator include providing permissions for interviews, showing the records to the state regulator on-demand, and holding or destroying records not knowingly. But providing the records to borrowers is not included and hence, is the answer.

Which of the following is a duty of a mortgage loan originator?

A mortgage loan originator (MLO) is an individual who, for compensation or gain, or in the expectation of compensation or gain, takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan.

Which of the following is not included in the definition of a mortgage loan originator?

(b) Mortgage loan originator does not include any of the following: (1) An individual who performs purely administrative or clerical tasks on behalf of a person meeting the definition of a mortgage loan originator, except as provided in subdivision (c) of Section 50003.6.

Which one of the following is not an activity typically done by a mortgage loan originator?

Making an underwriting decision is not included as an activity that defines offering or negotiating the terms of a loan; therefore, the person performing this task would not need to be licensed as a mortgage loan originator.

What is an MLO? (Mortgage loan originators explained)

32 related questions found

Which of the following is not true about the financial responsibility of a mortgage loan originator?

Which of the following is NOT true about the financial responsibility of a mortgage loan originator? The answer is a mortgage loan originator must always have his or her own surety bond in an amount that reflects the dollar value of loans originated in the previous year.

Which of the following is not an example of a financing activity?

Buying and selling investments are considered investing activities and not financing activities. This is NOT a financing activity.

What is the primary role of the loan originator?

They are crucial in the mortgage process. Their primary role is to assist clients in finding the right mortgage. They assess each applicant's financial profile to recommend suitable loan options.

Which of the following is not considered a mortgage loan originator according to safe?

A person or entity that only performs real estate brokerage activities and is licensed or registered in accordance with applicable state law is not a mortgage loan originator.

What does respa not include?

RESPA does not apply to extensions of credit to the government, government agencies, or instrumentalities, or in situations where the borrower plans to use property or land primarily for business, commercial, or agricultural purposes.

Which of the following defines a mortgage loan?

A mortgage is a loan used to purchase or maintain a home, plot of land, or other real estate. The borrower agrees to pay the lender over time, typically in a series of regular payments divided into principal and interest. The property then serves as collateral to secure the loan.

What is the minimum credit score you need to show financial responsibility?

Lenders generally view those with credit scores of 670 and up as acceptable or lower-risk borrowers. Individuals in this category are often considered “subprime” borrowers. Lenders may consider them higher-risk, and they may have trouble qualifying for new credit.

How many scored questions are on the UST test?

The UST is a new domain or section in the National Test. This new domain includes 25 questions which brings the length of the National Test Component with Uniform State Content to 125 questions, of which 115 are scored and ten are un-scored. See table below for more details on the features of the test components.

Which of the following is not applicable to responsibility?

Accounting centre is not applicable to responsibility accounting.

What is the role of an originator?

The mortgage originator is the primary lender and can act as a mortgage banker or broker. Originators fall under the primary mortgage market division and collaborate with loan processors and underwriters throughout the entire process from start to approval status, and handle the collection of relevant documentation.

Which of the following is not one of the key duties of the Federal Reserve?

Short Answer

The correct answer is b. Printing currency, as it is not one of the main functions of the Federal Reserve.

Which of the following is not true about a mortgage loan originator?

Final answer: The incorrect statement is that a mortgage loan originator must always maintain their own surety bond reflecting the amount of their previous year's loans(D). This is not always the case, as they can be covered under a sponsor's bond or may not need a bond if they pay into a state consumer claim fund.

Which is not a function of a mortgage broker?

After the transaction has been consummated and closed between the lender and borrower, the mortgage broker has no further responsibilities. Their function is limited to bringing the borrower and lender together. A mortgage broker does not make loans to sell to investors.

Which of the following is not covered by RESPA?

The following transactions are not covered by RESPA: An all-cash sale; • A sale where the individual home seller takes back the mortgage; and • Business, Commercial, or Agricultural purpose loans. RESPA requires disclosures to be given to applicants for a federally related mortgage loan.

What are the duties of an originator?

An originator is responsible for procuring grain from producers, growers and grain elevators. They maintain and grow business relationships by providing strong, credible and trustworthy services for producers.

What is the loan originator rule?

What is the Loan Originator Rule about? The Loan Originator Rule generally regulates how compensation is paid to a loan originator in most closed-end mortgage transactions, including: Prohibiting a loan originator's compensation from being based on the terms of the transaction or a proxy for a transaction term.

What is the function of loan origination?

Loan origination is the process by which a borrower applies for a new loan, and a lender processes that application. Origination generally includes all the steps from taking a loan application up to disbursal of funds (or declining the application). For mortgages, there is a specific mortgage origination process.

Which of the following is not included in finance?

Loans against shares cannot be considered as finance.

Which of the following is a typical financing activity?

Finance activities include the issuance and repayment of equity, payment of dividends, issuance and repayment of debt, and capital lease obligations. Companies that require capital will raise money by issuing debt or equity, and this will be reflected in the cash flow statement.

Which of the following is not the responsibility of the treasurer?

The answer is D. Internal accounting should be processed and monitored by account department, but not the treasurer. A treasurer will have following core responsibilities: cash management, liquidity management, raising capital, corporate finance, etc.