An MLO holding state licensing in multiple states accepts employment with a federally insured bank. What happens to their existing state licenses?
Correct Answer
A) All state licenses are automatically suspended while federally registered
An individual cannot hold both state licensing and federal registration simultaneously. When an MLO becomes federally registered, any existing state licenses are automatically suspended and cannot be used for loan origination activities.
Why This Is the Correct Answer
An individual cannot hold both state licensing and federal registration simultaneously. When an MLO becomes federally registered, any existing state licenses are automatically suspended and cannot be used for loan origination activities.
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?
People Also Study
Federal Mortgage-Related Laws
23% of exam
General Mortgage Knowledge
23% of exam
Mortgage Loan Origination Activities
25% of exam
Ethics, Fraud & Consumer Protection
17% of exam
Previous Question
A federally registered MLO at a national bank wants to originate loans in a state where the bank does not have physical branches. What registration requirement applies?
Next Question
A mortgage loan originator company has assets of $150,000 and liabilities of $130,000. Does this company meet the SAFE Act net worth requirement?