Sounds like the judge was saying she was practicing law without a license? She was giving legal advice by recommending that the particular document she gave the defendant was the correct one for his situation. While she was correct, she may not have had the "credentials" to give such advice.
As a RealtorŪ, we have to be very careful about doing something like that. All forms we use are written by attorneys for our State Board of RealtorsŪ.