Which conduct violates Delaware’s prohibited-acts section by failing to handle funds properly?
Correct Answer
B) Failing to truthfully account for monies belonging to a party to a residential mortgage loan transaction
Delaware Code prohibits failing to truthfully account for monies belonging to a party to a residential mortgage loan transaction.
Why This Is the Correct Answer
Delaware Code prohibits failing to truthfully account for monies belonging to a party to a residential mortgage loan transaction.
Why the Other Options Are Wrong
Option A: Clearly disclosing required fees
Clear fee disclosure is not the prohibited failure to account for funds.
Option C: Using the correct NMLS identifier
Using the correct identifier is required conduct, not the funds-accounting violation.
Option D: Updating the application journal
Updating the journal supports compliance.
Memory Technique
DE-C017 -> Delaware-prohibited-acts-and-enforcement
Exam Tip
Truthful accounting for transaction funds is a Delaware prohibited-practice item.
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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