Loan Officer Practice Exam 2026 – Comprehensive All-in-One Guide for Exam Success!

Distributing a business card that states, "I can help you get a loan," could be classified as committing a prohibited act due to being unregistered as a mortgage loan originator (MLO) because the individual is presenting themselves in a capacity that implies they are able to take loan applications or negotiate terms without being properly licensed or registered.

In the context of mortgage processing, only licensed MLOs are permitted to advertise their services as originators. The statement on the business card suggests an ability to assist with obtaining a loan, which exceeds the typical role of a processor, as it implies engagement in activities that could be construed as soliciting or offering loan products. Therefore, this action can violate regulations regarding who is allowed to advertise mortgage origination services.

The nature of the language used on the card implies direct involvement in originating loans, which requires appropriate licensing that the processor does not have. Consequently, this behavior can lead to repercussions under lending laws, as it misrepresents the individual's qualifications and scope of work within the mortgage industry.