West Virginia Mortgage Law Practice Test

A mortgage loan originator is an individual who does which of the following in exchange for compensation or gain?

1. Assists with underwriting loans

2. Offers or negotiates terms of a residential mortgage loan application

3. Performs clerical work

4. Provides home inspections

The correct answer is: Assists with underwriting loans

The role of a mortgage loan originator specifically involves offering or negotiating the terms of a residential mortgage loan application. This individual acts as an intermediary between borrowers and lenders, working to facilitate the loan process by helping to determine the borrower's needs, explaining loan options, and guiding them through the application and approval process. While assisting with underwriting, performing clerical work, or providing home inspections are important tasks related to the real estate and mortgage processes, they do not fall under the definition of a mortgage loan originator. Underwriters, for instance, evaluate and verify loan applications and determine risk, which is a distinct function from loan origination. Clerical work may involve administrative tasks but lacks the direct engagement with clients regarding loan negotiations. Home inspections are conducted by professionals in that specific field and are unrelated to the origination of loans. Thus, offering or negotiating terms is central to the responsibilities of a mortgage loan originator, making it the correct answer.