Which of the following is NOT an activity that a Residential Mortgage Broker can perform?

Which of the following is NOT an activity that a Residential Mortgage Broker can perform?

• A. Negotiate mortgage loans
• B. Place mortgage loans
• C. Provide counseling on mortgage options
• D. Make mortgage loans

Answer: (D)

The activity that is NOT performed by a Residential Mortgage Broker is making mortgage loans. A Residential Mortgage Broker serves as an intermediary between borrowers and lenders, helping clients find and negotiate mortgage options that suit their needs. They can negotiate mortgage loans on behalf of the borrower and place those loans with lenders, effectively facilitating the transaction process. Furthermore, providing counseling on various mortgage options is within their scope to aid borrowers in understanding the best choices available to them. In contrast, making mortgage loans is a function reserved for lenders or financial institutions that have the authority and capital to extend loans directly to borrowers. Brokers do not have the funding to originate loans; instead, they assist in connecting borrowers with lenders who can provide the financing needed. This delineation is crucial for understanding the distinct roles within the mortgage industry.

The activity that is NOT performed by a Residential Mortgage Broker is making mortgage loans. A Residential Mortgage Broker serves as an intermediary between borrowers and lenders, helping clients find and negotiate mortgage options that suit their needs. They can negotiate mortgage loans on behalf of the borrower and place those loans with lenders, effectively facilitating the transaction process. Furthermore, providing counseling on various mortgage options is within their scope to aid borrowers in understanding the best choices available to them.

In contrast, making mortgage loans is a function reserved for lenders or financial institutions that have the authority and capital to extend loans directly to borrowers. Brokers do not have the funding to originate loans; instead, they assist in connecting borrowers with lenders who can provide the financing needed. This delineation is crucial for understanding the distinct roles within the mortgage industry.