The Unlicensed Storefront Intake Assistant
Tasha works at a Louisiana mortgage broker licensed by the Office of Financial Institutions. She is paid hourly and holds no MLO license. Her title is 'marketing assistant,' but her daily work includes answering the main line, asking callers for income, credit score, and down payment, telling them 'you should qualify at about $1,900 a month,' emailing a fee worksheet, and requesting pay stubs and bank statements. She reads the rate sheet aloud when callers ask about rate. The owner says Tasha is 'just doing intake' and that a licensed MLO reviews every file after she completes it. The broker's main office is licensed, but Tasha works from an unlicensed storefront the company opened six weeks ago. OFI examiners are scheduled in three weeks.
1. Which of Tasha's activities require an MLO license under the Louisiana Residential Mortgage Lending Act and the SAFE Act? Does the later review by a licensed MLO cure the problem?
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Most of Tasha's work requires licensure. Asking income, credit score, and down payment is taking an application. Telling callers they 'should qualify' at a payment amount is prequalifying and offering loan terms. Reading the rate sheet aloud and emailing a fee worksheet are quoting rates and terms. Requesting pay stubs and bank statements as part of evaluating qualification also goes beyond clerical support. A later review by a licensed MLO does not cure unlicensed origination; the SAFE Act and Louisiana RMLA prohibit an unlicensed person from taking applications or offering loan terms in the first place. True clerical tasks - answering the phone, scheduling, routing calls, and collecting documents after a licensed MLO has taken the application - may be permissible if supervised and not involving judgment about eligibility or pricing.
2. What licensing and supervision issues does the storefront raise, and what should the broker do before the examination?
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The storefront appears to be an unlicensed branch. Louisiana requires branch offices to be licensed, and operating an unlicensed location can support a separate violation even if the main office is licensed. Before the exam the broker should stop Tasha from all origination activity, reassign intake to a licensed MLO, and either license the storefront or stop conducting business there. The broker should audit files Tasha touched to identify the MLO of record, train staff on the boundary between clerical and origination work, and document the corrective steps. Backdating or creating records to hide the issue would be worse than the original violation. Depending on facts, the broker should consider self-disclosure to OFI with counsel.