An MLO applicant has a felony drug conviction from 8 years ago (non-fraud related) and has maintained clean credit and no subsequent legal issues. What is their licensing status?
Correct Answer
B) Eligible to apply since 7 years have passed
Since the felony conviction was not related to fraud, dishonesty, breach of trust, or money laundering, and more than 7 years have passed since conviction, the applicant meets the basic criminal history requirements under the SAFE Act.
Why This Is the Correct Answer
Since the felony conviction was not related to fraud, dishonesty, breach of trust, or money laundering, and more than 7 years have passed since conviction, the applicant meets the basic criminal history requirements under the SAFE Act.
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A state regulatory authority discovers during an examination that an MLO has been operating without proper licensing for six months. What enforcement action is most appropriate?
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