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A federally registered MLO at a national bank wants to originate loans in a state where the bank does not have physical branches. What registration requirement applies?

Correct Answer

C) The MLO's federal registration covers all states where the bank is authorized to lend

Federal registration through NMLS covers all states where the depository institution is authorized to conduct business, regardless of physical branch presence. State-by-state registration is not required for federally registered MLOs.

Answer Options
A
The MLO must obtain additional state licensing in that state
B
The MLO must register with NMLS for that specific state
C
The MLO's federal registration covers all states where the bank is authorized to lend
D
The MLO cannot originate loans outside states where the bank has branches

Why This Is the Correct Answer

Federal registration through NMLS covers all states where the depository institution is authorized to conduct business, regardless of physical branch presence. State-by-state registration is not required for federally registered MLOs.

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