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A substantial equity owner of a Delaware originating entity personally engages in mortgage loan originating in Delaware with respect to residential property. Which statement is most accurate?

Correct Answer

B) The owner can fit Delaware’s MLO definition for that activity

Delaware’s MLO definition includes any person who, as an originating entity or substantial equity owner of an originating entity, engages in mortgage loan originating in Delaware with respect to residential property.

Answer Options
A
Substantial equity owners are always outside the Delaware MLO definition even when originating
B
The owner can fit Delaware’s MLO definition for that activity
C
The owner is covered only if unpaid
D
The owner is covered only for commercial property loans

Why This Is the Correct Answer

Delaware’s MLO definition includes any person who, as an originating entity or substantial equity owner of an originating entity, engages in mortgage loan originating in Delaware with respect to residential property.

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