A supervisor wants to avoid a Massachusetts licensing error related to advertising and consumer-protection controls. Which statement is safest to rely on?
Correct Answer
D) Massachusetts prohibits collecting or proposing a prohibited fee, requiring property insurance over replacement cost, and failing to truthfully account for money belonging to a party to a residential mortgage loan transaction.
Massachusetts prohibits collecting or proposing a prohibited fee, requiring property insurance over replacement cost, and failing to truthfully account for money belonging to a party to a residential mortgage loan transaction.
Why This Is the Correct Answer
Massachusetts prohibits collecting or proposing a prohibited fee, requiring property insurance over replacement cost, and failing to truthfully account for money belonging to a party to a residential mortgage loan transaction.
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 C: Let the MLO originate while waiting for the Massachusetts status, sponsorship, or renewal issue to be corrected.
Let the MLO originate while waiting for the Massachusetts 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
MA -> ma-prohibited-practices-and-consumer-protection
Exam Tip
Massachusetts prohibited-practice questions often test fraud or misleading conduct, unfair or deceptive practices, best-efforts fees, unlicensed activity, false filings, appraiser influence, prohibited fees, excessive insurance, and accounting for funds.
Common Mistakes to Avoid
- -Using a national baseline answer when Massachusetts has a state-specific rule
- -Confusing NMLS workflow, Massachusetts Division of Banks requirements, Chapter 255F rules, and state regulator guidance
- -Treating temporary authority, inactive status, or exemptions as blanket permission
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