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A mortgage file is paused during a secondary-market screen because of License Suspension Grounds. Which answer should avoid a shortcut that would misapply the rule?

Correct Answer

B) Stop activity if authority is suspended

Regulators may deny, suspend, revoke, condition, or discipline licenses for statutory or compliance failures. The best answer is "Stop activity if authority is suspended".

Answer Options
A
Use prior experience as a substitute for the required rule.
B
Stop activity if authority is suspended
C
Resolve the License Suspension Grounds issue with the rate-lock exception that does not fit the facts.
D
Treat the requirement as optional because the file appears low risk.

Why This Is the Correct Answer

Regulators may deny, suspend, revoke, condition, or discipline licenses for statutory or compliance failures. The best answer is "Stop activity if authority is suspended".

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