Are account executives employed by wholesale lenders required to obtain an MLO License?
Whether an individual is considered to be an MLO is not based on the title or position of the person, but rather whether the activity of the person fits within the definition of MLO. The definition of an MLO can be found in Section 22013(a) of the CFLL and Section 50003.5 of the CRMLA, which states in a pertinent part: “Mortgage loan originator” means 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…” (Emphasis added.) Moreover, HUD’s proposed rule Section 3400.103 provides: (c)(1) An individual ‘‘takes a residential mortgage loan application’’ if the individual receives a residential mortgage loan application for the purpose of deciding (or influencing or soliciting the decision of another) whether to extend an offer of residential mortgage loan terms to a borrower or prospective borrower (or to accept the terms offered by a borrower or
