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
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