Which term describes the arranger of loans who does not issue loans themselves and must be licensed?

• A. Mortgage loan originator
• B. Mortgage broker
• C. Real estate agent
• D. Lender

Answer: (A)

The key idea here is who starts the mortgage process and must be licensed. The mortgage loan originator is the person who handles the loan application, collects the borrower’s financial information, analyzes credit, and negotiates the terms with a lender on the borrower’s behalf. They originate the loan, but they don’t issue or fund it themselves—the lender is the one who funds. Because this role involves evaluating and presenting loan terms directly to borrowers, it requires licensing to protect consumers and ensure proper compliance. A mortgage broker also helps arrange loans, but the term described—someone who originates the loan and must be licensed—best fits the mortgage loan originator. A real estate agent isn’t the licensed party arranging loans, and a lender is the entity that provides the funds rather than arranging the loan.