An MLO's license is revoked, but the MLO continues to work for the same company in a non-MLO capacity, such as processing loans. The regulator discovers this arrangement. What action can be taken?
Correct Answer
C) Take action against both the individual and the sponsoring company
When a revoked MLO continues working in the mortgage industry, regulators can take action against both the individual (for potentially circumventing the revocation) and the sponsoring company (for employing someone who may be effectively performing MLO duties without proper licensing).
Why This Is the Correct Answer
When a revoked MLO continues working in the mortgage industry, regulators can take action against both the individual (for potentially circumventing the revocation) and the sponsoring company (for employing someone who may be effectively performing MLO duties without proper licensing).
More UST Questions
If a state regulatory authority finds violations during an examination, what factors typically influence the severity of enforcement action?
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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?
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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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