Which activity does NOT exempt a person from required mortgage loan originator licensing?

The activity that does not exempt a person from required mortgage loan originator licensing is the compensation paid to a real estate licensee for referring a borrower to a licensed mortgage loan originator. This scenario is relevant because it highlights the regulatory framework surrounding mortgage loan origination and the necessity for individuals to hold a license when engaging in specific activities involving mortgage loans.

Mortgage loan originators are required to be licensed because they perform tasks that are central to the lending process, such as taking applications and negotiating terms for mortgages. When a real estate licensee simply refers a borrower to a licensed mortgage lender, they are not engaged in the origination of the loan itself; therefore, while they can receive compensation for that referral, it does not exempt them from needing a mortgage origination license for direct involvement in the lending process. This distinction is vital for maintaining consumer protection and ensuring that those who are originating loans meet the necessary qualifications and adhere to regulatory standards.

In contrast, activities related to extending credit to timeshare buyers, family members negotiating loans among themselves, and activities by real estate licensees that do not involve the negotiation of terms directly would typically fall under exemptions. These scenarios often involve situations where the individuals are not acting as formal mortgage loan originators, thus not