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Mortgage brokerageSubject 18 of 19

Mortgage loan originator

An individual who, for compensation or expected gain, takes a residential mortgage application or offers or negotiates residential mortgage terms, subject to statutory exceptions.

Also called: MLO, loan originator

Direct answer

What does Mortgage loan originator mean?

An individual who, for compensation or expected gain, takes a residential mortgage application or offers or negotiates residential mortgage terms, subject to statutory exceptions.

Exam cue: New York uses Department of Financial Services licensing and the Nationwide Multistate Licensing System for covered MLO activity.

What does it look like in a question?

New York example

An employee discusses loan terms and takes a residential application for an originating entity.

Common exam trap

What should you not confuse it with?

An MLO license is not a real estate salesperson license.

Related mortgage brokerage terms

BorrowerA person or entity that receives or seeks credit and promises repayment under the loan terms.LenderA person or entity that extends credit and is entitled to repayment under the loan agreement.Mortgage bankerA person or entity in the business of making mortgage loans with its own funds or a credit line, subject to applicable licensing or exemption rules.Mortgage brokerA person or entity that solicits, processes, places or negotiates mortgage loans for others rather than acting as the funding lender in the ordinary broker role.Referral feeCompensation paid for directing business or a customer to another provider.Table fundingA closing arrangement in which a loan is funded by an advance from another person and assigned at or around settlement, as defined by applicable lending rules.
Sources used3 references with section locators

The curriculum citation confirms exam scope. Definition and rule citations support the explanation itself. Links and locators were checked on August 26, 2026.

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