A mortgage loan originator who has been federally registered for 18 months decides to leave their current depository institution to work for a state-licensed mortgage company. What is required for this transition?
Correct Answer
B) The MLO must obtain state licensing and cannot originate loans until the license is issued
When transitioning from federal registration to state licensing, the MLO must obtain proper state licensing before originating loans. There is no grace period for unlicensed activity, and federal registration does not transfer to non-depository institutions.
Why This Is the Correct Answer
When transitioning from federal registration to state licensing, the MLO must obtain proper state licensing before originating loans. There is no grace period for unlicensed activity, and federal registration does not transfer to non-depository institutions.
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