An MLO employed by a community bank that is a member of the Federal Reserve System but not FDIC-insured would be required to:
Correct Answer
B) Obtain state licensing only
The key factor is FDIC insurance, not Federal Reserve membership. Only MLOs employed by federally insured depository institutions qualify for federal registration. Without FDIC insurance, the MLO must obtain state licensing regardless of Federal Reserve membership.
Why This Is the Correct Answer
The key factor is FDIC insurance, not Federal Reserve membership. Only MLOs employed by federally insured depository institutions qualify for federal registration. Without FDIC insurance, the MLO must obtain state licensing regardless of Federal Reserve membership.
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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Previous Question
A state-licensed MLO moves to a new state and applies for licensure. Their fingerprint-based background check from the previous state was completed 6 months ago. What is required?
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An MLO receives notice that their license is being revoked due to a felony conviction for financial fraud. What is the MLO's right regarding this administrative action?