For an already licensed Delaware MLO, the minimum surety bond amount is based on what measure?
Correct Answer
D) The annual volume of Delaware mortgage loans originated for the year ending December 31 that precedes the effective license year
Delaware Regulation 2401 bases a licensed MLO’s minimum surety bond amount on the volume of Delaware mortgage loans originated for the year ending December 31 before the effective license year.
Why This Is the Correct Answer
Delaware Regulation 2401 bases a licensed MLO’s minimum surety bond amount on the volume of Delaware mortgage loans originated for the year ending December 31 before the effective license year.
Why the Other Options Are Wrong
Option A: The applicant’s personal credit score only
Personal credit history can matter elsewhere in licensing, but it is not the bond-volume table measure.
Option B: The number of employees at the employer nationwide
The Delaware MLO bond table is based on Delaware mortgage loan volume, not nationwide employee count.
Option C: The average interest rate on the MLO’s loans
Average interest rate is not the Delaware bond-tier measure.
Memory Technique
DE-C013 -> Delaware-surety-bond
Exam Tip
The bond ladder follows Delaware mortgage loan volume.
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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