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
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