A Delaware MLO no longer meets the minimum standards for license issuance. What may that support under section 2413?
Correct Answer
C) License discipline such as suspension, conditioning, refusal to renew, or revocation
Delaware section 2413 identifies failure to meet section 2406 or renewal requirements as a ground for license discipline.
Why This Is the Correct Answer
Delaware section 2413 identifies failure to meet section 2406 or renewal requirements as a ground for license discipline. The supported consequence is license discipline such as suspension, conditioning, refusal to renew, or revocation.
Why the Other Options Are Wrong
Option A: Automatic waiver of all renewal standards
Failure to meet standards does not waive renewal standards.
Option B: A guarantee of license renewal
It is a risk to renewal, not a guarantee.
Option D: Removal of the Commissioner’s authority
The statute gives the Commissioner authority.
Memory Technique
DE-C036 -> Delaware-prohibited-acts-and-enforcement
Exam Tip
Eligibility standards continue after initial issuance.
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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