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Which example illustrates an individual engaged in loan origination activities that do NOT require licensing?

  1. Kirk, who provides financing repeatedly and with habitualness for the sale of multiple properties he owns.

  2. Jen, who originates loans as part of her duties as an employee of a non-profit organization.

  3. Maria, who refers clients to a licensed lender.

  4. Tom, who helps his friends obtain personal loans.

The correct answer is: Kirk, who provides financing repeatedly and with habitualness for the sale of multiple properties he owns.

An individual engaged in loan origination activities that do not require licensing is best illustrated by the situation where the person refers clients to a licensed lender. This activity does not involve the actual origination or negotiation of loans; rather, it focuses on connecting borrowers with lenders. In this context, Maria's role as a referrer means she is not taking active steps to originate loans or negotiate terms, which typically requires a license. Instead, her function is more akin to that of a facilitator, helping others navigate the lending landscape without directly engaging in the regulated activities that would necessitate licensure. Conversely, the scenarios involving Kirk, Jen, and Tom involve various levels of participation in loan origination activities. Kirk's habitual financing for property sales suggests a business-like approach, which would typically require licensing due to the regularity and business nature of the transactions. Jen’s origination of loans as part of a non-profit role could still demand a license depending on the nature and extent of her activities, especially if she is negotiating loan terms. Lastly, Tom’s assistance to friends in obtaining personal loans indicates a level of closeness that may not seem commercial; however, he could still be engaging in activities requiring a license, depending on the specifics of his involvement