Does Delaware MLO status depend on how the originating entity compensates the person?
Correct Answer
A) No. Delaware includes covered persons irrespective of how they are compensated by the originating entity
Delaware defines MLO to include a person employed by or affiliated with an originating entity who engages in mortgage loan originating in Delaware irrespective of how the person is compensated.
Why This Is the Correct Answer
Delaware defines MLO to include a person employed by or affiliated with an originating entity who engages in mortgage loan originating in Delaware irrespective of how the person is compensated.
Why the Other Options Are Wrong
Option B: Yes. Only commission compensation creates MLO status
The Delaware definition is not limited to commissions.
Option C: Yes. Only hourly wages create MLO status
The Delaware definition is not limited to hourly wages.
Option D: Yes. Compensation method controls more than the activity performed
The definition centers on covered activity and affiliation, not just compensation method.
Memory Technique
DE-C024 -> Delaware-definitions-and-exemptions
Exam Tip
Do not let compensation form distract from the Delaware activity test.
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?
People Also Study
Federal Mortgage-Related Laws
24% of exam
General Mortgage Knowledge
20% of exam
Mortgage Loan Origination Activities
27% of exam
Ethics, Fraud & Consumer Protection
18% of exam