Which is an allowed advertising approach for a sponsored MLO?

• A. Under the MLO's personal name
• B. Under a generic advertisement label
• C. Under the name of the entity or a registered branch office or trade name
• D. Under the state-wide advertising slogan

Answer: (C)

Advertising a sponsored MLO must clearly tie the marketing to the sponsoring entity. The licensed lender or mortgage broker is the party responsible for the loan and for complying with advertising regulations, so the ad should be published under the entity’s name or its registered branch office or trade name. This makes it clear who is offering the loan and who is accountable, which protects consumers and aligns with licensing requirements.

Advertising under the MLO’s personal name can blur who is legally responsible and who is marketing the loan, which is why it’s not allowed for a sponsored MLO. A generic advertisement label or a broad state-wide slogan fails to identify the sponsor and the responsible licensee, so it doesn’t meet the requirement to clearly attribute the advertisement to the licensed entity or its branch/trade name.