Under licensing requirements, a licensed loan originator may work for which entity?

• A. All licensed lenders in the state.
• B. A non-licensed entity.
• C. A licensed entity in another state.
• D. Only the licensed entity with which he or she is currently employed.

Answer: (D)

Licensing ties a loan originator to the employer that holds the license. A licensed loan originator is authorized to originate loans only for the licensed entity that sponsors them, so they cannot work for a non-licensed firm or for multiple lenders at once. The license is tied to the current employing entity, meaning they may originate on behalf of that one licensed employer. If they move to a new employer, the new employer must sponsor them and the license is typically transferred or reissued to reflect the new sponsor. This ensures supervision and accountability stay with the licensed entity responsible for the originator’s activities.