A mortgage lender is revising its Pennsylvania desk guide for sponsorship and employment status. Which rule should remain in the guide?
Correct Answer
C) Pennsylvania allows a licensed mortgage lender to act as a mortgage broker without a separate broker license and to service loans the mortgage lender originated, negotiated, and owns without a separate servicer license.
Pennsylvania allows a licensed mortgage lender to act as a mortgage broker without a separate broker license and to service loans the mortgage lender originated, negotiated, and owns without a separate servicer license.
Why This Is the Correct Answer
Pennsylvania allows a licensed mortgage lender to act as a mortgage broker without a separate broker license and to service loans the mortgage lender originated, negotiated, and owns without a separate servicer license.
Why the Other Options Are Wrong
Option A: Skip documentation because the disciplinary-risk review appears routine.
Skip documentation because the disciplinary-risk review appears routine. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option B: 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 D: 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.
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
In a pricing desk question, an audit analyst sees facts tied to Prohibited Misrepresentation. What should the file reflect?
An applicant previously had an MLO license revoked by a state regulator. Under the SAFE Act minimum standards for a new state-licensed MLO license, which statement is correct?
Which statement correctly distinguishes a license suspension from a license revocation?
A state regulator has issued an order suspending an MLO's authority effective immediately. The MLO has filed an appeal, but no stay has been granted. What should the MLO do?
An MLO license application asks whether the applicant has been the subject of a regulatory order. The applicant has a recent consent order that falls within the question. What is the proper response?
Why does NMLS maintain licensing and enforcement information that participating regulators can access?
A regulator issues a final license suspension without giving the MLO notice of the alleged violation or any opportunity to respond, even though applicable law requires both. What issue is presented?
A regulator finds that an MLO charged consumers prohibited fees. Which set of actions is consistent with the enforcement tools contemplated by Regulation H?
An MLO's license status in NMLS changes to suspended, with no stay or reinstatement shown. What is the immediate operational effect?
Which fact most directly supports disciplinary action against an MLO rather than merely a request for additional application information?
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