Which action by an attorney would violate the mortgage originator exemption?

The action that would violate the mortgage originator exemption is when an attorney suggests that the client refinance and accepts a monthly fee from the lender. This scenario indicates that the attorney is engaging in activities that are typically associated with mortgage loan origination without being licensed to do so.

Under the regulations set forth by the NMLS, individuals who perform mortgage origination activities must be licensed as mortgage loan originators. The act of suggesting a refinance in exchange for a fee constitutes compensation for engaging in mortgage origination activities, as it implies a financial interest in the deal and an effort to facilitate a loan for the client.

In contrast, actions such as suggesting placing real estate into a trust, reviewing loan closing documents, and reviewing good faith estimates are all legal and permissible for attorneys. These activities are primarily focused on legal advice and do not directly pertain to facilitating loan origination, thus allowing attorneys to maintain their exemption from mortgage loan originator licensing requirements.