What must happen immediately after recovery on a Delaware MLO bond action?
Correct Answer
A) The licensee must file a new bond
Delaware Code states that immediately upon recovery on any action on the bond, the licensee shall file a new bond.
Why This Is the Correct Answer
Delaware Code states that immediately upon recovery on any action on the bond, the licensee shall file a new bond.
Why the Other Options Are Wrong
Option B: The licensee is exempt from all future bond requirements
Recovery does not exempt the licensee from future bond requirements.
Option C: The borrower must file the new bond
The borrower is not responsible for filing the licensee’s new bond.
Option D: The licensee can wait until the next 5-year retest period
The requirement is immediate, not tied to a 5-year retest period.
Memory Technique
DE-C013 -> Delaware-surety-bond
Exam Tip
Bond recovery means a new bond must be filed immediately.
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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