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Under Virginia's Mortgage Lender and Broker Act, which activity would require a company to obtain a mortgage broker license rather than a mortgage lender license?

Correct Answer

A) Arranging mortgage loans between borrowers and third-party lenders for compensation

A mortgage broker license is required when a company arranges loans between borrowers and third-party lenders for compensation. This distinguishes brokers from lenders who use their own funds.

Answer Options
A
Arranging mortgage loans between borrowers and third-party lenders for compensation
B
Making mortgage loans using the company's own funds
C
Purchasing mortgage loans in the secondary market
D
Servicing mortgage loans for other lenders

Why This Is the Correct Answer

A mortgage broker license is required when a company arranges loans between borrowers and third-party lenders for compensation. This distinguishes brokers from lenders who use their own funds.

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