A Delaware MLO violates a federal law applicable to business conducted under the Delaware MLO chapter. Can that matter for Delaware discipline?
Correct Answer
D) Yes. Section 2413 includes violations of other state or federal law, rule, or regulation
Delaware section 2413 includes failure to comply with any other law, rule, or regulation of Delaware or the federal government as a discipline ground.
Why This Is the Correct Answer
Delaware section 2413 includes failure to comply with any other law, rule, or regulation of Delaware or the federal government as a discipline ground.
Why the Other Options Are Wrong
Option A: No. Delaware may consider only Delaware-only statutes
The statute is not limited to Delaware-only provisions.
Option B: No. Federal law can never affect state MLO discipline
Federal law can matter under the Delaware discipline provision.
Option C: Only the borrower can discipline the MLO
The Commissioner, not the borrower, has the discipline authority in the cited section.
Memory Technique
DE-C036 -> Delaware-prohibited-acts-and-enforcement
Exam Tip
Delaware discipline can incorporate applicable federal-law violations.
Common Mistakes to Avoid
- -Importing another state requirement into Delaware
- -Confusing NMLS baseline requirements with Delaware-specific rules
- -Treating operational assumptions as legal authority
More UST Questions
In a pricing desk question, an audit analyst sees facts tied to Prohibited Misrepresentation. What should the file reflect?
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?
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?
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