For a Virginia regulator exam preparation, a licensing coordinator is training staff on licensing and NMLS authority. Which answer should be used?
Correct Answer
B) Virginia requires the stated MLO licensing or NMLS authority before covered origination activity.
Virginia licensees may not tell a consumer they are preapproved for a mortgage loan unless they contemporaneously provide a written disclosure in at least 10-point type explaining that the loan application has not been approved and what must occur before approval; telephone preapproval requires the written disclosure within 3 business days.
Why This Is the Correct Answer
Virginia requires the stated MLO licensing or NMLS authority before covered origination activity. This is correct because Virginia licensees may not tell a consumer they are preapproved for a mortgage loan unless they contemporaneously provide a written disclosure in at least 10-point type explaining that the loan application has not been approved and what must occur before approval; telephone preapproval requires the written disclosure within 3 business days.
Why the Other Options Are Wrong
Option A: Handle licensing and NMLS authority with an informal note rather than the required license, disclosure, filing, or record.
Handle licensing and NMLS authority with an informal note rather than the required license, disclosure, filing, or record. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Use another jurisdiction's approval as a substitute for the Virginia requirement.
Use another jurisdiction's approval as a substitute for the Virginia requirement. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Treat the requirement as waived because the borrower or employer agrees.
Treat the requirement as waived because the borrower or employer agrees. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
VA -> licensing and NMLS authority
Exam Tip
Identify the Virginia state requirement first, then choose the answer that preserves licensing, disclosure, record, supervision, or enforcement compliance.
Common Mistakes to Avoid
- -Using a generic national rule when the Virginia state requirement controls
- -Treating Virginia licensing, reporting, advertising, records, or enforcement duties as optional
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