What must every loan originator be affiliated with?

• A. A PLM
• B. A Compliance Officer
• C. An Underwriter
• D. A Branch Manager

Answer: (A)

Supervision and accountability for loan originators are built around a designated supervisor who provides ongoing guidance, training, and policy enforcement. Every loan originator is affiliated with a Principal Lending Manager, who serves as the local go-to supervisor responsible for ensuring the originator follows company policies, licensing rules, and regulatory requirements. This relationship creates consistent oversight and a clear point of accountability for the originator’s practices and decisions.

A Compliance Officer, while essential to the overall regulatory program, does not personally mentor or supervise each originator's day-to-day activities. An Underwriter evaluates credit risk and loan terms rather than supervising the originator. A Branch Manager oversees branch operations, but the required, formal affiliation for ongoing supervision in many programs is specifically with the Principal Lending Manager, who is empowered to oversee an originator across the lending process.