Mortgage Loan Originator (MLO) Licensing Practice Test

The activity that is not considered a loan origination activity is assisting in a loan modification. Loan origination primarily refers to the process involved in creating new loans, such as gathering borrower information, evaluating creditworthiness, and preparing loan applications for new mortgages.

Assisting in a refinance and processing a purchase loan involve taking on new loans or adjusting existing terms, which are core components of loan origination. Changing the name of debtors on an existing loan also does not create new terms or initiate new lending, but it is still related to management of existing loans, rather than origination. In contrast, a loan modification is about altering the terms of an existing loan due to changes in the borrower's financial situation, aimed at making payments more manageable, rather than creating a new loan. Thus, it is distinctly categorized outside the scope of loan origination activities.