A lender preparing a Pennsylvania mortgage operations checklist asks a loan file reviewer about sponsorship and employment status. Which response should be followed?
Correct Answer
A) Pennsylvania prohibits engaging in the mortgage loan business without the required mortgage broker, mortgage lender, mortgage servicer, or mortgage originator license unless an exception applies.
Pennsylvania prohibits engaging in the mortgage loan business without the required mortgage broker, mortgage lender, mortgage servicer, or mortgage originator license unless an exception applies.
Why This Is the Correct Answer
Pennsylvania prohibits engaging in the mortgage loan business without the required mortgage broker, mortgage lender, mortgage servicer, or mortgage originator license unless an exception applies.
Why the Other Options Are Wrong
Option B: Assume the Pennsylvania requirement does not apply to this annual compliance meeting.
Assume the Pennsylvania requirement does not apply to this annual compliance meeting. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Treat sponsorship and employment status as satisfied by borrower consent alone.
Treat sponsorship and employment status as satisfied by borrower consent alone. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Delay the Pennsylvania requirement until after the loan closes or the renewal period ends.
Delay the Pennsylvania requirement until after the loan closes or the renewal period ends. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
PA -> pa-mla-scope-exemptions-sponsorship-originator-limitations
Exam Tip
Pennsylvania scope questions turn on the MLA definition of mortgage originator, NMLS sponsorship, one-sponsor activity, depository and attorney exceptions, fewer-than-4-loans exception, remote-location controls, and business-purpose exclusions.
Common Mistakes to Avoid
- -Using generic federal mortgage facts when Pennsylvania MLA, Pennsylvania Code, DoBS, or NMLS state-specific rules are being tested
- -Confusing Pennsylvania individual MLO licensing or sponsorship with mortgage broker, lender, servicer, branch, or qualifying-individual requirements
- -Treating Pennsylvania bond, record, advertising, disclosure, ability-to-repay, servicing, loss mitigation, or enforcement requirements as optional
More UST Questions
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