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Understanding the Role of a State-Licensed Loan Originator
Definition & Meaning
A state-licensed loan originator is an individual who facilitates the process of obtaining loans, particularly mortgage loans, but is not employed by a depository institution or its subsidiaries. To operate as a loan originator, this person must be licensed by a state or the Secretary of Housing and Urban Development and must register with the Nationwide Mortgage Licensing System and Registry, where they maintain a unique identifier.
Table of content
Legal Use & context
This term is commonly used in the mortgage and lending industry. State-licensed loan originators are essential in real estate transactions, helping clients navigate the loan application process. Legal areas involving this term include:
Real estate law
Consumer protection law
Financial regulation
Individuals can manage some aspects of this process using legal templates available through platforms like US Legal Forms, which provide necessary documentation and guidance for both borrowers and loan originators.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: Jane is a state-licensed loan originator who works independently. She helps clients secure mortgages by guiding them through the application process and ensuring they meet the necessary requirements.
Example 2: John, a loan originator, assists a couple in obtaining a home loan. He provides them with information about different loan options and helps them complete the required paperwork. (hypothetical example)
Relevant laws & statutes
Key statutes related to state-licensed loan originators include:
12 USCS § 5102 - Definitions related to loan origination.
12 USCS § 5107 - Licensing requirements for loan originators.
State-by-state differences
State
Licensing Authority
Unique Requirements
California
Department of Financial Protection and Innovation
Must complete specific pre-licensing education.
Texas
Texas Department of Savings and Mortgage Lending
Requires a background check and fingerprinting.
New York
Department of Financial Services
Must complete a state-specific exam.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Common misunderstandings
What to do if this term applies to you
If you are considering becoming a state-licensed loan originator, follow these steps:
Research your state's licensing requirements.
Complete any required education or training.
Apply for a license through your state's regulatory body.
Register with the Nationwide Mortgage Licensing System and Registry.
For assistance, consider using US Legal Forms' templates for necessary documentation. If you find the process complex, consulting a legal professional may be beneficial.
Find the legal form that fits your case
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