Which personal legal or financial event is specifically listed as requiring prompt notice to the Delaware Commissioner by a licensed MLO?
Correct Answer
B) The filing of a bankruptcy petition in which the MLO is the debtor
Delaware Regulation 2401 lists the filing of any bankruptcy petition in which the MLO is the debtor as an event requiring prompt notice to the Commissioner.
Why This Is the Correct Answer
Delaware Regulation 2401 lists the filing of any bankruptcy petition in which the MLO is the debtor as an event requiring prompt notice to the Commissioner.
Why the Other Options Are Wrong
Option A: A borrower making an extra principal payment
Borrower payment activity is not the MLO personal notification event listed here.
Option C: A loan processor taking vacation
A processor vacation is not a listed Delaware MLO notice event.
Option D: An appraiser changing appointment times
An appraiser scheduling change is not one of the listed MLO notice events.
Memory Technique
DE-C014 -> Delaware-records-reports-and-identifiers
Exam Tip
Bankruptcy, judgments, liens, and foreclosure actions involving the MLO are Delaware notification triggers.
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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