State law prohibits failing to truthfully account for money belonging to a party to a residential mortgage loan transaction. A licensee collects a $675 appraisal fee, orders no appraisal, and cannot show where the money went. What obligation has the licensee failed to meet with respect to the collected appraisal money?
Correct Answer
D) Prohibited: a licensee must account for the $675 taken from a borrower
D. The licensee has failed to account for the collected appraisal money. Apply the stated accounting obligation to the missing explanation of where the fee went. Minnesota section 58A.16 provides an enacted example of this prohibition. Scope and exceptions: This question does not decide every fee-refund dispute or establish a nationwide refund deadline. Minnesota is a supporting example, not proof of identical rules in every state. Source: Subdivision 1(14), 2025 edition — https://www.revisor.mn.gov/statutes/cite/58A.16
Why This Is the Correct Answer
D. The licensee has failed to account for the collected appraisal money. Apply the stated accounting obligation to the missing explanation of where the fee went. Minnesota section 58A.16 provides an enacted example of this prohibition. Scope and exceptions: This question does not decide every fee-refund dispute or establish a nationwide refund deadline. Minnesota is a supporting example, not proof of identical rules in every state.
Why the Other Options Are Wrong
Option A: Prohibited only where the licensee collected 2 or more such fees
The stated duty has no two-fee threshold.
Option B: Permitted, because the $675 is earned when the file is opened
Opening a file does not establish that this appraisal fee was earned.
Option C: Permitted where the licensee refunds the fee within 60 days of request
A promised later refund does not answer the failure to account.
Exam Tip
Document the disposition of borrower funds; do not confuse receipt with earning a fee.
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