Who must be licensed as a mortgage loan originator?

A mortgage solicitor must be licensed as a mortgage loan originator because they engage in activities specifically aimed at facilitating residential mortgage loans. This requires a thorough understanding of both the legal framework governing residential mortgages and the needs of consumers seeking financing. Mortgage solicitors often present themselves to potential borrowers, help them understand loan options, and may even assist them in completing applications—all activities that fall under the definition of mortgage origination.

In contrast, real estate brokers who do not participate in mortgage activities are not required to have a mortgage loan originator license because they are not involved in the loan origination process. Similarly, licensed attorneys who negotiate residential mortgage loans are typically exempt from this licensing requirement due to their legal background. Housing counselors, while providing valuable support to homebuyers, focus primarily on offering advice and assistance rather than directly originating loans, and thus do not require the same level of licensing.