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In a document-cure review, an audit analyst sees facts tied to Federal vs State Registration. What should the file reflect?

Correct Answer

A) Obtain the required license or registration before MLO activity

MLOs must be properly licensed or registered before taking applications or offering/negotiating terms. The best answer is "Obtain the required license or registration before MLO activity".

Answer Options
A
Obtain the required license or registration before MLO activity
B
Use prior experience as a substitute for the required rule.
C
Use prior servicing transfer approval as a substitute for the current Federal vs State Registration requirement.
D
Treat the requirement as optional because the file appears low risk.

Why This Is the Correct Answer

MLOs must be properly licensed or registered before taking applications or offering/negotiating terms. The best answer is "Obtain the required license or registration before MLO activity".

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