A credit union MLO discovers their institution is converting from federal to state charter while maintaining federal insurance. How does this affect their registration?
Correct Answer
B) The MLO's federal registration remains valid due to continued federal insurance
Federal registration eligibility is based on federal deposit insurance status, not charter type. A state-chartered, federally insured credit union's MLOs remain eligible for federal registration through NMLS.
Why This Is the Correct Answer
Federal registration eligibility is based on federal deposit insurance status, not charter type. A state-chartered, federally insured credit union's MLOs remain eligible for federal registration through NMLS.
More UST Questions
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Previous Question
An MLO receives a consent order requiring payment of a $5,000 fine and completion of additional education within 60 days. The MLO pays the fine but fails to complete the education by the deadline. What enforcement action is most appropriate?
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Which of the following MLOs would be exempt from the 8-hour continuing education requirement?