An MLO receives notice that the state regulator will conduct an examination in 30 days. The MLO immediately begins organizing files and correcting documentation errors. Is this preparation legally problematic?
Correct Answer
D) No, unless the MLO destroys or falsifies existing records
MLOs are permitted to organize and prepare their records for examination. However, destroying, altering, or falsifying existing records would constitute obstruction. Proper organization and correction of ongoing practices is acceptable preparation.
Why This Is the Correct Answer
MLOs are permitted to organize and prepare their records for examination. However, destroying, altering, or falsifying existing records would constitute obstruction. Proper organization and correction of ongoing practices is acceptable preparation.
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