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
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