A person is an independent contractor of a Delaware originating entity and is compensated indirectly by that entity while engaging in mortgage loan originating. How does Delaware treat that affiliation?
Correct Answer
D) The person is affiliated with the originating entity for Delaware MLO definition purposes
Delaware says affiliated with an originating entity includes an independent contractor compensated by the originating entity in whole or in part, directly or indirectly.
Why This Is the Correct Answer
Delaware says affiliated with an originating entity includes an independent contractor compensated by the originating entity in whole or in part, directly or indirectly.
Why the Other Options Are Wrong
Option A: Independent contractors are always excluded from Delaware MLO coverage
Delaware expressly includes some independent contractors.
Option B: Indirect compensation can never create affiliation
The Delaware definition includes indirect compensation.
Option C: Only salaried employees can be affiliated
The definition is not limited to salaried employees.
Memory Technique
DE-C024 -> Delaware-definitions-and-exemptions
Exam Tip
Independent contractor plus compensation can still fit Delaware MLO status.
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?
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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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