An MLO asks how Georgia handles temporary authority. Which answer should compliance give?
Correct Answer
C) Georgia requires the stated MLO licensing or NMLS authority before covered origination activity.
When a Georgia sponsor uses an MLO operating under temporary authority, the sponsor must disclose in writing that the responsible MLO is not currently licensed by Georgia DBF and is operating under federal temporary authority while the application is pending; the MLO must indicate TAO or temporary authority to operate next to the signature line on signed loan documents.
Why This Is the Correct Answer
Georgia requires the stated MLO licensing or NMLS authority before covered origination activity. This is correct because When a Georgia sponsor uses an MLO operating under temporary authority, the sponsor must disclose in writing that the responsible MLO is not currently licensed by Georgia DBF and is operating under federal temporary authority while the application is pending; the MLO must indicate TAO or temporary authority to operate next to the signature line on signed loan documents.
Why the Other Options Are Wrong
Option A: Rely on prior mortgage experience instead of the stated licensing or compliance requirement.
Rely on prior mortgage experience instead of the stated licensing or compliance requirement. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option B: Continue the activity and document the issue only if a complaint is later filed.
Continue the activity and document the issue only if a complaint is later filed. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Let the MLO originate while waiting for the Georgia status, sponsorship, or renewal issue to be corrected.
Let the MLO originate while waiting for the Georgia status, sponsorship, or renewal issue to be corrected. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
GA -> temporary authority
Exam Tip
Identify the Georgia state requirement first, then choose the answer that preserves licensing, disclosure, record, supervision, or enforcement compliance.
Common Mistakes to Avoid
- -Using a generic national rule when the Georgia state requirement controls
- -Treating Georgia licensing, reporting, advertising, records, or enforcement duties as optional
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