In Delaware, which person generally must hold a Delaware MLO license if they perform the activity as an independent contractor?
Correct Answer
B) An independent loan processor or independent underwriter
Delaware treats an independent processor or independent underwriter as needing the MLO license before engaging in covered Delaware residential mortgage loan business.
Why This Is the Correct Answer
Delaware treats an independent processor or independent underwriter as needing the MLO license before engaging in covered Delaware residential mortgage loan business.
Why the Other Options Are Wrong
Option A: A teller employed by a depository institution who never offers loan terms
The question asks about independent processor/underwriter activity, not an employee who does not offer or negotiate terms.
Option C: A family member negotiating a loan only for an immediate family member
Delaware has a family-member exemption when the individual offers or negotiates terms with or on behalf of an immediate family member.
Option D: A real estate broker paid only for real estate brokerage services
Real estate brokerage activity has a separate exclusion unless compensation comes from a lender, mortgage broker, or MLO-related source.
Memory Technique
DE-C002 -> Delaware-license-requirement-and-scope
Exam Tip
Independent processor and independent underwriter are common Delaware traps.
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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