During a Delaware examination or investigation, what may the Commissioner do to documents and records?
Correct Answer
B) Control access, take possession, or place a person in exclusive charge where records are kept
Delaware section 2417 permits the Commissioner to control access to records, take possession, or place a person in exclusive charge of them.
Why This Is the Correct Answer
Delaware section 2417 permits the Commissioner to control access to records, take possession, or place a person in exclusive charge of them.
Why the Other Options Are Wrong
Option A: Require the MLO to mail them to the borrower only
The authority concerns regulatory control, not borrower-only mailing.
Option C: Require immediate public posting of every record
Control of records is not the same as public posting of every record.
Option D: Order their destruction before review
The authority preserves access/control for examination, not destruction before review.
Memory Technique
DE-C041 -> Delaware-prohibited-acts-and-enforcement
Exam Tip
The Commissioner can control records during an exam.
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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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?
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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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