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
A Washington broker provides the federal settlement service estimates and booklet in 2026 and no separate state itemization. Can disclosures compliant with RESPA and Regulation X satisfy the state third-party itemization subsection?
Priya is comparing pre-license education providers before applying for a Florida mortgage loan originator license. How many hours of approved pre-license education must she complete in total?
An applicant is budgeting for a Florida MLO license and asks what the state application fee comes to at filing. Which figure is correct?
A newly sponsored Florida MLO is told she must buy an individual surety bond in her own name before she can originate. Is that correct?
A Washington consumer loan act licensee also brokers loans in 2026 outside the authority of that act. Does the consumer-loan-act exemption extend to mortgage brokerage outside that act’s authority?
A $200,000 Texas home equity loan has $3,700 in fees subject to the constitutional cap and a separate $600 fee for an appraisal performed by a third-party appraiser. Do the capped fees exceed the limit?
An owner applies for a Texas home equity loan on 4 May 2026 and the lender delivers the required notice on 8 May. Which date starts the constitutional 12-day waiting period for closing?
An owner closed a Texas home equity loan on 3 February 2026 and wants a second one on the same homestead in November 2026. Assuming no declared-emergency exception applies and the earlier home equity lien will be paid off, may the new loan close in November?
A Texas home equity loan forecloses and the sale leaves the lender $62,000 short of the balance owed. Absent actual fraud in obtaining the credit, may the lender recover the shortfall personally from the owner or spouse?
A Washington real estate broker helps a 2026 buyer arrange financing and takes only the usual sales commission. Does financing assistance incidental to a bona fide sale for only the customary real-estate commission fall within the exemption?
People Also Study
Federal Mortgage-Related Laws
24% of exam
General Mortgage Knowledge
20% of exam
Mortgage Loan Origination Activities
27% of exam
Ethics, Fraud & Consumer Protection
18% of exam