A mortgage loan originator working for a state-chartered bank that is FDIC-insured but not a Federal Reserve member must:
Correct Answer
B) Obtain federal registration because it's FDIC-insured
FDIC insurance, not the charter type, determines the requirement. Any MLO employed by an FDIC-insured institution qualifies for federal registration regardless of whether the bank is state or federally chartered. The key factor is federal deposit insurance coverage.
Why This Is the Correct Answer
FDIC insurance, not the charter type, determines the requirement. Any MLO employed by an FDIC-insured institution qualifies for federal registration regardless of whether the bank is state or federally chartered. The key factor is federal deposit insurance coverage.
More UST Questions
If a state regulatory authority finds violations during an examination, what factors typically influence the severity of enforcement action?
Under the SAFE Act, an individual who works for a federally chartered bank and takes mortgage applications must:
An MLO under investigation claims that certain requested documents are protected by attorney-client privilege because they were prepared in consultation with legal counsel. How should the state regulator respond?
Which scenario represents the MOST serious violation of appraisal independence requirements?
An MLO's license is suspended for 6 months, but after 3 months, the MLO demonstrates completion of remedial actions. Can the regulator lift the suspension early?
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