When does Delaware section 2417 allow the Commissioner to limit ordinary business access to controlled records?
Correct Answer
D) When there are reasonable grounds to believe records have been or are at risk of being altered or destroyed to conceal a violation
Delaware section 2417 permits business access unless the Commissioner has reasonable grounds to believe records have been or are at risk of being altered or destroyed to conceal a violation.
Why This Is the Correct Answer
Delaware section 2417 permits business access unless the Commissioner has reasonable grounds to believe records have been or are at risk of being altered or destroyed to conceal a violation.
Why the Other Options Are Wrong
Option A: Whenever a borrower asks for a lower rate
Borrower rate requests are not the statutory concealment-risk standard.
Option B: Whenever an MLO changes address
An address change alone is not the statutory concealment-risk standard.
Option C: Only when the license is already expired for 5 years
The rule is not limited to 5-year expired licenses.
Memory Technique
DE-C041 -> Delaware-prohibited-acts-and-enforcement
Exam Tip
The access-limiting trigger is risk of alteration or destruction to conceal a violation.
Common Mistakes to Avoid
- -Importing another state requirement into Delaware
- -Confusing NMLS baseline requirements with Delaware-specific rules
- -Treating operational assumptions as legal authority
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