A non-exempt individual wants to originate a residential mortgage loan secured by a dwelling located in Delaware. What must the individual do before conducting that Delaware business?
Correct Answer
A) Obtain and annually maintain a Delaware MLO license and NMLS unique identifier
Delaware requires a non-exempt individual to obtain and annually maintain a Delaware MLO license before engaging in MLO business for a dwelling located in the state, and the licensee must maintain an NMLS unique identifier.
Why This Is the Correct Answer
Delaware requires a non-exempt individual to obtain and annually maintain a Delaware MLO license before engaging in MLO business for a dwelling located in the state, and the licensee must maintain an NMLS unique identifier.
Why the Other Options Are Wrong
Option B: Register only with the employing company because Delaware does not license MLOs
Delaware does license individual MLOs; company-only registration is not enough for a covered individual.
Option C: Wait until the first loan closes before applying for a Delaware license
The license is required before conducting the covered Delaware business, not after the first closing.
Option D: Apply only for a company license through Delaware NMLS
Delaware currently licenses individuals through NMLS for MLO licensing; this question concerns the individual MLO requirement.
Memory Technique
DE-C002 -> Delaware-license-requirement-and-scope
Exam Tip
For Delaware license-scope questions, anchor on the location of the dwelling and whether the individual is exempt.
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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