A branch manager is comparing company policy with Virginia rules on temporary authority. Which statement is correct?
Correct Answer
D) Virginia prohibits an individual from engaging in the business of an MLO unless the individual has first obtained and annually maintains a Chapter 17 license, except where temporary authority or an exemption applies.
Virginia prohibits an individual from engaging in the business of an MLO unless the individual has first obtained and annually maintains a Chapter 17 license, except where temporary authority or an exemption applies.
Why This Is the Correct Answer
Virginia prohibits an individual from engaging in the business of an MLO unless the individual has first obtained and annually maintains a Chapter 17 license, except where temporary authority or an exemption applies.
Why the Other Options Are Wrong
Option A: 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.
Option B: Apply the Virginia rule only to company licenses and never to individual MLO activity.
Apply the Virginia rule only to company licenses and never to individual MLO activity. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Handle temporary authority with an informal note rather than the required license, disclosure, filing, or record.
Handle temporary 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.
Memory Technique
VA -> va-MLO-scope-exemptions-temporary-authority-sponsorship
Exam Tip
Virginia scope questions turn on the Chapter 17 MLO definition, residential mortgage loan definition, licensing exemptions, temporary authority, processor and underwriter limits, 10VAC5-161 activity definitions, and bona fide nonprofit conditions.
Common Mistakes to Avoid
- -Using generic federal mortgage facts when Virginia Code, Virginia Administrative Code, SCC/BFI, or NMLS state-specific rules are being tested
- -Confusing Virginia individual MLO licensing or sponsorship with mortgage lender, broker, branch, remote-location, or company requirements
- -Treating Virginia bond, record, advertising, disclosure, lock-in, escrow, reporting, 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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