Which person fits Delaware’s registered MLO exemption when acting for the described entity?
Correct Answer
D) An MLO employee of a depository institution who is registered with and maintains a unique identifier through NMLS
Delaware exempts registered MLOs when acting for covered depository, qualifying subsidiary, or Farm Credit entities and registered with and maintaining a unique identifier through NMLS.
Why This Is the Correct Answer
Delaware exempts registered MLOs when acting for covered depository, qualifying subsidiary, or Farm Credit entities and registered with and maintaining a unique identifier through NMLS.
Why the Other Options Are Wrong
Option A: An independent loan broker who has no NMLS identifier
An independent loan broker without the required NMLS identifier is not the registered MLO exemption.
Option B: A loan processor advertising that they can negotiate loan rates
Advertising the ability to perform MLO activity is outside the processor-only support role.
Option C: A real estate broker compensated by a lender to negotiate loan terms
Lender compensation can remove the real estate brokerage exclusion.
Memory Technique
DE-C005 -> Delaware-definitions-and-exemptions
Exam Tip
Registered MLO is not just a label; it depends on the employer category and NMLS registration.
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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