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Before the file moves forward, Gray must resolve an issue involving SAFE Act SAFE Act prohibited conduct. What should happen?

Correct Answer

A) Avoid unlicensed MLO activity

Prohibited conduct includes misrepresentation, unlicensed activity, improper fees, steering, and failure to follow regulator orders. The best answer is "Avoid unlicensed MLO activity".

Answer Options
A
Avoid unlicensed MLO activity
B
Use prior experience as a substitute for the required rule.
C
Proceed first and document the compliance issue only if an examiner asks.
D
Treat the requirement as optional because the file appears low risk.

Why This Is the Correct Answer

Prohibited conduct includes misrepresentation, unlicensed activity, improper fees, steering, and failure to follow regulator orders. The best answer is "Avoid unlicensed MLO activity".

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