If an MLO's state license application is denied on day 75 of their temporary authority period, what happens to their ability to originate loans?
Correct Answer
B) They must immediately cease loan origination activities
Temporary authority terminates immediately upon denial of the state license application. The MLO must cease all loan origination activities and cannot continue operating in any capacity as an MLO.
Why This Is the Correct Answer
Temporary authority terminates immediately upon denial of the state license application. The MLO must cease all loan origination activities and cannot continue operating in any capacity as an MLO.
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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