An individual violates Delaware section 2404 by conducting covered MLO business without the required license. Which penalty provision matters?
Correct Answer
B) Section 2423, because violation of section 2404 is a class A misdemeanor
Delaware section 2423 states that violation of section 2404 is a class A misdemeanor.
Why This Is the Correct Answer
Delaware section 2423 states that violation of section 2404 is a class A misdemeanor.
Why the Other Options Are Wrong
Option A: The CE instructor credit rule only
CE instructor credit does not address unlicensed activity penalties.
Option C: The bond-volume table only
Bond-volume tiers do not provide the criminal classification.
Option D: The NMLS call-center phone number only
The call-center number is not a penalty provision.
Memory Technique
DE-C042 -> Delaware-prohibited-acts-and-enforcement
Exam Tip
Pair section 2404 licensing requirement with section 2423 penalty.
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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