A mortgage company asks a compliance manager to validate an Indiana mortgage operations checklist involving licensing and NMLS authority. Which statement is reliable?
Correct Answer
C) Indiana DFI treats violation of 750 IAC 9 as a basis for suspension or revocation of a DFI MLO license.
Indiana DFI treats violation of 750 IAC 9 as a basis for suspension or revocation of a DFI MLO license.
Why This Is the Correct Answer
Indiana DFI treats violation of 750 IAC 9 as a basis for suspension or revocation of a DFI MLO license.
Why the Other Options Are Wrong
Option A: Treat the timing or filing requirement as optional if the transaction appears low risk.
Treat the timing or filing requirement as optional if the transaction appears low risk. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option B: Assume the Indiana requirement does not apply to this advertising approval.
Assume the Indiana requirement does not apply to this advertising approval. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Treat licensing and NMLS authority as satisfied by borrower consent alone.
Treat licensing and NMLS authority as satisfied by borrower consent alone. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
IN -> in-conduct-advertising-disclosures-prohibited-practices
Exam Tip
Indiana conduct questions test misrepresentation, advertising, NMLS identifiers, borrower-facing disclosures, fee handling, and prohibited state-law practices.
Common Mistakes to Avoid
- -Using generic federal mortgage facts when Indiana state-specific rules are being tested
- -Confusing Indiana individual MLO licensing with company, branch, sponsor, bond, or record requirements
- -Treating Indiana state-law conduct, advertising, reporting, servicing, or enforcement requirements as optional
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