A mortgage team is building a Virginia procedure for temporary authority. Which statement matches the state requirement?
Correct Answer
C) Virginia requires the stated MLO licensing or NMLS authority before covered origination activity.
Virginia temporary authority to act as an MLO exists only to the extent authorized by the federal SAFE Act, and both the individual and employing mortgage lender or broker remain subject to Virginia Chapter 17 and Chapter 16 requirements as if the individual were licensed.
Why This Is the Correct Answer
Virginia requires the stated MLO licensing or NMLS authority before covered origination activity. This is correct because Virginia temporary authority to act as an MLO exists only to the extent authorized by the federal SAFE Act, and both the individual and employing mortgage lender or broker remain subject to Virginia Chapter 17 and Chapter 16 requirements as if the individual were licensed.
Why the Other Options Are Wrong
Option A: 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 B: 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.
Option D: Assume another state's approval automatically satisfies the Virginia requirement.
Assume another state's approval automatically satisfies the Virginia requirement. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
VA -> temporary 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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