An applicant previously had an MLO license revoked by a state regulator. Under the SAFE Act minimum standards for a new state-licensed MLO license, which statement is correct?
Correct Answer
C) A prior MLO license revocation in any governmental jurisdiction prevents meeting the federal minimum standard
Why this is correct: Under the SAFE Act's minimum standards for obtaining a state MLO license, an applicant is disqualified if they have ever had an MLO license revoked in any governmental jurisdiction. This is an absolute bar, unlike the seven-year look-back for certain felony convictions. Why the other choices are wrong: "The prior revocation is irrelevant after seven years" is wrong because the seven-year rule applies to certain criminal convictions, not license revocations, which have no expiration for this purpose. "The applicant may omit it if no criminal charge was filed" is wrong because license revocation is a separate regulatory action that must be disclosed and is a disqualifier regardless of criminal charges. "Completing additional continuing education automatically cures the revocation" is wrong because education cannot cure a revocation; the license is terminated and a new application would be subject to the minimum standards. Exam tip: Remember: SAFE Act minimum standards treat prior license revocation as a permanent bar, while some felony convictions may be evaluated after seven years.
Why This Is the Correct Answer
Why this is correct: Under the SAFE Act's minimum standards for obtaining a state MLO license, an applicant is disqualified if they have ever had an MLO license revoked in any governmental jurisdiction. This is an absolute bar, unlike the seven-year look-back for certain felony convictions. Why the other choices are wrong: "The prior revocation is irrelevant after seven years" is wrong because the seven-year rule applies to certain criminal convictions, not license revocations, which have no expiration for this purpose. "The applicant may omit it if no criminal charge was filed" is wrong because license revocation is a separate regulatory action that must be disclosed and is a disqualifier regardless of criminal charges. "Completing additional continuing education automatically cures the revocation" is wrong because education cannot cure a revocation; the license is terminated and a new application would be subject to the minimum standards. Exam tip: Remember: SAFE Act minimum standards treat prior license revocation as a permanent bar, while some felony convictions may be evaluated after seven years.
More UST Questions
In a pricing desk question, an audit analyst sees facts tied to Prohibited Misrepresentation. What should the file reflect?
Which statement correctly distinguishes a license suspension from a license revocation?
A state regulator has issued an order suspending an MLO's authority effective immediately. The MLO has filed an appeal, but no stay has been granted. What should the MLO do?
An MLO license application asks whether the applicant has been the subject of a regulatory order. The applicant has a recent consent order that falls within the question. What is the proper response?
Why does NMLS maintain licensing and enforcement information that participating regulators can access?
A regulator issues a final license suspension without giving the MLO notice of the alleged violation or any opportunity to respond, even though applicable law requires both. What issue is presented?
A regulator finds that an MLO charged consumers prohibited fees. Which set of actions is consistent with the enforcement tools contemplated by Regulation H?
An MLO's license status in NMLS changes to suspended, with no stay or reinstatement shown. What is the immediate operational effect?
Which fact most directly supports disciplinary action against an MLO rather than merely a request for additional application information?
After finding repeated deceptive conduct, a regulator orders an MLO to stop the practice and refund affected consumers. How should these remedies be characterized?
People Also Study
Federal Mortgage-Related Laws
24% of exam
General Mortgage Knowledge
20% of exam
Mortgage Loan Origination Activities
27% of exam
Ethics, Fraud & Consumer Protection
18% of exam