DRE & Licensing

What is the purpose of the California Mortgage Loan Originator (MLO) license endorsement?

ATo allow brokers to sell title insurance
BTo allow real estate licensees to take residential mortgage loan applications and offer or negotiate loan terms✓ Correct
CTo authorize appraisers to perform mortgage appraisals
DTo allow brokers to manage real estate investment trusts

Explanation

The Mortgage Loan Originator (MLO) license endorsement, required under the SAFE Act and administered by the DRE, allows licensed real estate brokers and salespersons to originate residential mortgage loans — taking loan applications and offering or negotiating the terms of loans for compensation. This endorsement requires additional testing and continuing education.

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