A manager at a Delaware originating entity supervises MLOs but does not communicate directly with customers. Under Delaware’s definition page, how is the manager treated?
Correct Answer
C) The manager is not deemed an MLO solely on that supervisory role
Delaware states that an officer or manager that supervises MLO activities and does not communicate directly with customers is not included in the MLO definition on that basis.
Why This Is the Correct Answer
The manager is not deemed an MLO solely on that supervisory role is correct. Delaware states that an officer or manager that supervises MLO activities and does not communicate directly with customers is not included in the MLO definition on that basis. Delaware states that an officer or manager that supervises MLO activities and does not communicate directly with customers is not included in the MLO definition on that basis.
Why the Other Options Are Wrong
Option A: The manager is automatically an MLO because all supervisors are MLOs
Delaware provides an exclusion for certain non-customer-facing supervisors.
Option B: The manager must be an MLO because customer communication is irrelevant
Customer communication is relevant to the exclusion stated by Delaware.
Option D: The manager becomes an MLO only because the company is an originating entity
The company’s status alone does not erase the stated exclusion.
Memory Technique
DE-C025 -> Delaware-definitions-and-exemptions
Exam Tip
Supervision without direct customer communication is a Delaware definition trap.
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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