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A lender preparing an Alabama MLO sponsorship update asks an audit analyst about licensing and NMLS authority. Which response should be followed?

Correct Answer

D) Alabama mortgage licensing violations may result in administrative orders, civil money penalties, restitution, cease-and-desist orders, or similar remedies as allowed by state law.

Alabama mortgage licensing violations may result in administrative orders, civil money penalties, restitution, cease-and-desist orders, or similar remedies as allowed by state law.

Answer Options
A
Use another jurisdiction's approval as a substitute for the Alabama requirement.
B
Treat the requirement as waived because the borrower or employer agrees.
C
Assume another state's approval automatically satisfies the Alabama requirement.
D
Alabama mortgage licensing violations may result in administrative orders, civil money penalties, restitution, cease-and-desist orders, or similar remedies as allowed by state law.

Why This Is the Correct Answer

Alabama mortgage licensing violations may result in administrative orders, civil money penalties, restitution, cease-and-desist orders, or similar remedies as allowed by state law.

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