A Virginia file is paused during a company policy update because of sponsorship and employment status. Which statement clears the compliance question?
Correct Answer
A) Virginia requires the stated MLO licensing or NMLS authority before covered origination activity.
Virginia regulation requires MLO licensure for MLO activity by employees or exclusive agents of Chapter 16 licensees, employees or exclusive agents of Chapter 16-exempt persons other than registered MLOs, and individuals who are not employees or exclusive agents of either a licensee or exempt person.
Why This Is the Correct Answer
Virginia requires the stated MLO licensing or NMLS authority before covered origination activity. This is correct because Virginia regulation requires MLO licensure for MLO activity by employees or exclusive agents of Chapter 16 licensees, employees or exclusive agents of Chapter 16-exempt persons other than registered MLOs, and individuals who are not employees or exclusive agents of either a licensee or exempt person.
Why the Other Options Are Wrong
Option B: Use an informal manager exception without updating the license, file, or required record.
Use an informal manager exception without updating the license, file, or required record. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Use a verbal explanation instead of the required license status, disclosure, record, or filing.
Use a verbal explanation instead of the required license status, disclosure, record, or filing. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Use a supervisory file review exception instead of satisfying the rule before activity continues.
Use a supervisory file review exception instead of satisfying the rule before activity continues. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
VA -> sponsorship and employment status
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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An Indiana file is paused during a training scenario because of sponsorship and employment status. Which statement clears the compliance question?
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