A state regulator discovers an MLO has been convicted of a felony involving dishonesty that occurred 8 years ago but was not disclosed on the license application. The MLO argues the conviction is outside the 7-year reporting period. What action can the regulator take?
Correct Answer
C) Revoke the license for failure to disclose material information
While certain convictions may fall outside reporting periods, failure to disclose material information on a license application constitutes fraud or misrepresentation, which is grounds for revocation regardless of when the underlying conviction occurred.
Why This Is the Correct Answer
While certain convictions may fall outside reporting periods, failure to disclose material information on a license application constitutes fraud or misrepresentation, which is grounds for revocation regardless of when the underlying conviction occurred.
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An MLO who holds licenses in multiple states through NMLS discovers that one state has suspended their license due to a regulatory violation. What is the MLO's obligation regarding their other state licenses?
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An MLO tells a borrower that their credit score is 680 when it is actually 620 to help them qualify for a better rate. This is an example of: