A state regulator discovers during an investigation that an MLO has been splitting origination fees with an unlicensed individual who refers borrowers. The MLO claims the payments are for 'marketing services.' What investigative power would be MOST appropriate?
Correct Answer
A) Subpoena bank records to trace all payments to the individual
To prove illegal fee splitting, the regulator needs concrete evidence of payments and their true purpose. Bank records provide the most objective evidence of financial transactions and can establish patterns that contradict the MLO's claims about 'marketing services.'
Why This Is the Correct Answer
To prove illegal fee splitting, the regulator needs concrete evidence of payments and their true purpose. Bank records provide the most objective evidence of financial transactions and can establish patterns that contradict the MLO's claims about 'marketing services.'
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