In a Virginia record-retention audit, an audit analyst sees a compliance issue involving licensing and NMLS authority. What should the file reflect?
Correct Answer
C) Virginia requires the stated MLO licensing or NMLS authority before covered origination activity.
Virginia licensees must display proof of licensing on request, licenses are not transferable, no additional office may open without prior Commission approval and a $150 nonrefundable application fee, office approval is deemed granted if no contrary notice is mailed within 30 days, and office or senior-person changes require notice within 10 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 must display proof of licensing on request, licenses are not transferable, no additional office may open without prior Commission approval and a $150 nonrefundable application fee, office approval is deemed granted if no contrary notice is mailed within 30 days, and office or senior-person changes require notice within 10 days.
Why the Other Options Are Wrong
Option A: Virginia mortgage company applications and branch applications are handled outside NMLS whenever the company is already licensed in another state.
Virginia mortgage company applications and branch applications are handled outside NMLS whenever the company is already licensed in another state. is not correct because it does not match the Virginia rule applied in this scenario.
Option B: Virginia treats a remote location as an approved office merely because a loan originator works there.
Virginia treats a remote location as an approved office merely because a loan originator works there. is not correct because it does not match the Virginia rule applied in this scenario.
Option D: Virginia allows a mortgage lender applicant to qualify without showing operational funds or a company bond.
Virginia allows a mortgage lender applicant to qualify without showing operational funds or a company bond. is not correct because it does not match the Virginia rule applied in this scenario.
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
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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