Under what condition can a mortgage loan originator prepare a real estate purchase contract?

A mortgage loan originator can prepare a real estate purchase contract specifically when certain provisions of the contract impact the loan transaction. This means that if the terms of the purchase contract influence aspects such as the financing, terms of the loan, or contingencies related to the transaction, the originator is allowed to take an active role in preparing that contract.

It's important to note that the legal and regulatory framework surrounding mortgage practices often restricts loan originators from engaging in activities that are traditionally reserved for licensed real estate professionals, except in circumstances where their involvement is directly linked to the financing aspect. Therefore, having a clear connection between the provisions of the contract and the loan transaction justifies the originator's role in preparing it.

In scenarios where multiple properties are involved, a seller requests assistance, or contracts are under a specific dollar amount, these factors do not fundamentally affect the ability of a mortgage loan originator to prepare a contract. Instead, the focus remains on the implications of the contract for the financing process.