---
title: "Map who must hold a state residential mortgage loan originator license"
url: "https://ailawframework.com/practice/banking-and-finance/map-the-lender-s-licensing-and-conduct-obligations-for-this-facility/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A3-T1-R6-US"
practice_area: "Banking & Finance (Lending, Securities, Project Finance)"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

# Map who must hold a state residential mortgage loan originator license

> List each individual who takes a residential mortgage application or offers or negotiates its terms, and whether the file shows an NMLSR identifier and a state license. Do not decide that a person is licensed.

Canonical page: https://ailawframework.com/practice/banking-and-finance/map-the-lender-s-licensing-and-conduct-obligations-for-this-facility/united-states  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Banking & Finance (Lending, Securities, Project Finance)](https://ailawframework.com/practice/banking-and-finance.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | List each individual who takes a residential mortgage application or offers or negotiates its terms, and whether the file shows an NMLSR identifier and a state license. Do not decide that a person is licensed. |
| What the lawyer must review | 12 C.F.R. § 1008.103 is about individuals and residential mortgage loans, not about a corporate loan and not about the lender as an entity. For a state to have a SAFE-compliant program, the state must prohibit an individual from engaging in the business of a loan originator for a dwelling or residential real estate unless the individual registers through the NMLSR, obtains a unique identifier, and obtains and maintains a state loan originator license, except as paragraph (e) provides. Engaging in the business means, in a commercial context and habitually or repeatedly, taking an application and offering or negotiating terms for compensation or gain, or representing to the public that the individual can do so. Paragraph (e) lists individuals a state need not license, including a person who only performs real-estate brokerage and is not paid by a lender or originator, a person involved only in timeshare credit, and an employee of a covered financial institution who is registered and holds a unique identifier. The remainder of paragraph (e), including the housing-finance-agency definition, was not finished. You read it before you treat anyone as exempt. Opinion 512: you decide who needs a license. |
| Written for | United States |
| Applies to | [Map the lender's licensing and conduct obligations for this facility](https://ailawframework.com/practice/banking-and-finance/map-the-lender-s-licensing-and-conduct-obligations-for-this-facility.md) |

## Checking plan

- What the AI does: List each individual who takes a residential mortgage application or offers or negotiates its terms, and whether the file shows an NMLSR identifier and a state license. Do not decide that a person is licensed.
- Basis: Checked against the linked sources on 22 October 2026. Confirm the current instrument before reliance.

## Notes

- This is not a license for the lender entity, and it is not a rule for a corporate facility.
- Read the rest of § 1008.103(e) before you treat a person as exempt.

## Sources

- [12 C.F.R. § 1008.103, Individuals required to be licensed by states](https://www.law.cornell.edu/cfr/text/12/1008.103) (checked 2026-10-22)
- [ABA Formal Opinion 512, Generative Artificial Intelligence Tools (29 July 2024)](https://www.americanbar.org/content/dam/aba/administrative/professional_responsibility/ethics-opinions/aba-formal-opinion-512.pdf) (checked 2026-10-22)
- [ABA Model Rule 1.1, Competence](https://www.americanbar.org/groups/professional_responsibility/publications/model_rules_of_professional_conduct/rule_1_1_competence/) (checked 2026-10-22)

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*