Which Delaware scenario is expressly exempt from the Delaware MLO chapter?
Correct Answer
A) An individual offering or negotiating loan terms with or on behalf of an immediate family member
Delaware exempts an individual who offers or negotiates residential mortgage loan terms with or on behalf of the individual’s immediate family member.
Why This Is the Correct Answer
Delaware exempts an individual who offers or negotiates residential mortgage loan terms with or on behalf of the individual’s immediate family member.
Why the Other Options Are Wrong
Option B: An independent contractor processor handling Delaware loan files for compensation
Independent contractor processors or underwriters are specifically treated as needing MLO licensing for covered activities.
Option C: An individual advertising specific available rates without holding a valid required license
Unlicensed covered business and improper advertising are not the family-member exemption.
Option D: An MLO who fails to maintain a valid NMLS unique identifier
Maintaining a valid unique identifier is part of Delaware’s licensing framework.
Memory Technique
DE-C005 -> Delaware-definitions-and-exemptions
Exam Tip
Family-member exemptions are narrow; do not generalize them to public origination work.
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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