NMLS Laws and Regulations Practice Test

Regularly extends credit means you’re in the mortgage lending business when you originate or fund loans on a continuing basis. For licensing purposes, the line is crossed when you do more than five residential mortgage loans in a year. So, exceeding five triggers the need to be licensed as a mortgage loan originator, while five or fewer isn’t considered “regularly extending credit.” The other options don’t fit because exactly five isn’t “more than five,” less than five isn’t over the threshold, and “any number” would imply regulation at all levels, which isn’t how the standard works.