Loan Officer Practice Exam

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Which license type may NOT be issued to a corporation?

Mortgage banker.
Mortgage broker.
Commercial mortgage broker.
Mortgage loan originator.

The correct answer is: Mortgage loan originator.

The license type that may not be issued to a corporation is the mortgage loan originator. This is because a mortgage loan originator license is typically specific to individual professionals rather than entities. The role of a mortgage loan originator involves personal accountability and the ability to build client relationships, which are integral to a loan officer's job. Consequently, this license is designed for individuals who meet specific qualifications and requirements rather than for corporate entities. In contrast, the other options can indeed be issued to corporations. For instance, corporations can be licensed as mortgage bankers, mortgage brokers, or commercial mortgage brokers as these entities can operate under the compliance of necessary regulations and can manage multiple loan originators. This distinction emphasizes the individualized nature of the mortgage loan originator role compared to the broader corporate structure of the other options.