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A compliance exception review raises an MLO License Requirements question for the file reviewer. What answer should guide the file?

Correct Answer

C) Maintain the required bond, net worth, or recovery-fund coverage

State licensing frameworks may require net worth, surety bond coverage, or recovery-fund participation tied to origination volume. The best answer is "Maintain the required bond, net worth, or recovery-fund coverage".

Answer Options
A
Use prior experience as a substitute for the required rule.
B
Proceed first and document the compliance issue only if an examiner asks.
C
Maintain the required bond, net worth, or recovery-fund coverage
D
Treat the requirement as optional because the file appears low risk.

Why This Is the Correct Answer

State licensing frameworks may require net worth, surety bond coverage, or recovery-fund participation tied to origination volume. The best answer is "Maintain the required bond, net worth, or recovery-fund coverage".

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