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
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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