A community development financial institution (CDFI) that is not federally insured wants to hire MLOs. What registration/licensing path must their MLOs follow?
Correct Answer
B) State licensing because the institution lacks federal deposit insurance
Federal registration is only available to employees of federally insured depository institutions. CDFIs without federal deposit insurance must have their MLOs obtain state licensing, regardless of any federal oversight or community development status.
Why This Is the Correct Answer
Federal registration is only available to employees of federally insured depository institutions. CDFIs without federal deposit insurance must have their MLOs obtain state licensing, regardless of any federal oversight or community development status.
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