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Before the loan advances, a renewal specialist must resolve a federal registration and state licensing issue in a mortgage operations checklist. What should happen?

Correct Answer

B) Determine whether the individual is state-licensed or federally registered

MLOs must be properly licensed or registered before taking applications or offering/negotiating terms. The best answer is "Determine whether the individual is state-licensed or federally registered".

Answer Options
A
Use prior experience as a substitute for the required rule.
B
Determine whether the individual is state-licensed or federally registered
C
Delay the Federal Registration Requirements step until a later advertising disclosure review instead of acting now.
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 "Determine whether the individual is state-licensed or federally registered".

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