A state regulatory authority receives a tip that an MLO is advertising services in their state but is only licensed in a neighboring state. What is the FIRST step the authority should take in their investigation?
Correct Answer
C) Verify whether the MLO is actually conducting business in their state
Before taking any enforcement action, the state authority must first establish that the MLO is actually conducting mortgage loan origination activities within their jurisdiction. Mere advertising might not constitute conducting business, so the scope of activities must be determined first.
Why This Is the Correct Answer
Before taking any enforcement action, the state authority must first establish that the MLO is actually conducting mortgage loan origination activities within their jurisdiction. Mere advertising might not constitute conducting business, so the scope of activities must be determined first.
More UST Questions
What is the minimum net worth requirement for a mortgage lender licensee in Pennsylvania?
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