What is meant by "engaged in the business of a mortgage loan originator"?

The SAFE Act Final Rule states that not every person who acts as a “loan originator” must be licensed, but licensure is required for those persons who “engage in the business” of loan origination.

The Final Rule states that an individual is engaged in the business of a mortgage loan originator if he or she habitually or repeatedly in a commercial context: *

  • Takes a residential mortgage loan application; or,
  • Offers or negotiates the terms of a residential mortgage loan for compensation or gain; or
  • Otherwise holds him or herself out to the public to be in the business of a mortgage loan originator.

    * “Commercial context” is defined in the next FAQ.