A Delaware homeowner negotiates terms of a residential mortgage loan secured by a dwelling that served as the homeowner’s own residence. Under the Delaware exemption list, how is this treated?
Correct Answer
B) It is exempt from the Delaware MLO chapter
Delaware exempts an individual who offers or negotiates terms of a residential mortgage loan secured by a dwelling that served as the individual’s residence.
Why This Is the Correct Answer
It is exempt from the Delaware MLO chapter is correct. Delaware exempts an individual who offers or negotiates terms of a residential mortgage loan secured by a dwelling that served as the individual’s residence. Delaware exempts an individual who offers or negotiates terms of a residential mortgage loan secured by a dwelling that served as the individual’s residence.
Why the Other Options Are Wrong
Option A: It always requires a Delaware MLO license because all residential loans are covered
The statute provides a specific own-residence exemption.
Option C: It is exempt only if the person is paid by a lender
Being paid by a lender would not be the basis for this own-residence exemption.
Option D: It requires a mortgage company license but not an individual license
The exemption does not convert the issue into a mortgage company license requirement.
Memory Technique
DE-C005 -> Delaware-definitions-and-exemptions
Exam Tip
Own-residence scenarios are one of Delaware’s listed exemptions.
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
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