A lender preparing an Utah NMLS filing review asks a state compliance officer about advertising and consumer-protection controls. Which response should be followed?
Correct Answer
A) Utah prohibits violating RESPA Section 8 and charging excessive fees or fees without a signed written statement explaining refundability and refund conditions.
Utah prohibits violating RESPA Section 8 and charging excessive fees or fees without a signed written statement explaining refundability and refund conditions.
Why This Is the Correct Answer
Utah prohibits violating RESPA Section 8 and charging excessive fees or fees without a signed written statement explaining refundability and refund conditions.
Why the Other Options Are Wrong
Option B: Let the MLO originate while waiting for the Utah status, sponsorship, or renewal issue to be corrected.
Let the MLO originate while waiting for the Utah status, sponsorship, or renewal issue to be corrected. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Let production staff decide whether licensing and NMLS authority matters for the file.
Let production staff decide whether licensing and NMLS authority matters for the file. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Skip documentation because the consumer complaint response appears routine.
Skip documentation because the consumer complaint response appears routine. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
UT -> ut-prohibited-practices-and-consumer-protection
Exam Tip
Utah prohibited-practice questions often test RESPA Section 8, fee/refund statements, incompetence, false statements or documents, appraiser influence, false representations to the division, conflicting transaction roles, false advertising, dishonesty, and trigger-lead restrictions.
Common Mistakes to Avoid
- -Using a national baseline answer when Utah has a state-specific rule
- -Confusing NMLS workflow, Utah DRE requirements, Utah DFI guidance, Utah Code Title 61 Chapter 2c, and Utah Administrative Code R162-2c
- -Treating exemptions, DRE/DFI scope, processor or underwriter status, inactive status, or renewal timing as blanket permission
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