A compliance checklist separates federal SAFE rules from Virginia rules on advertising and consumer-protection controls. Which statement is accurate?
Correct Answer
D) Virginia mortgage borrowers may continue making payments to the transferor of servicing rights until the borrower receives written notice of the servicing transfer from the transferor under RESPA requirements.
Virginia mortgage borrowers may continue making payments to the transferor of servicing rights until the borrower receives written notice of the servicing transfer from the transferor under RESPA requirements.
Why This Is the Correct Answer
Virginia mortgage borrowers may continue making payments to the transferor of servicing rights until the borrower receives written notice of the servicing transfer from the transferor under RESPA requirements.
Why the Other Options Are Wrong
Option A: Skip the Virginia requirement because the company already follows general SAFE Act procedures.
Skip the Virginia requirement because the company already follows general SAFE Act procedures. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option B: Treat advertising and consumer-protection controls as optional because the company has a general Virginia compliance policy.
Treat advertising and consumer-protection controls as optional because the company has a general Virginia compliance policy. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Postpone the Virginia advertising and consumer-protection controls issue until the next annual review.
Postpone the Virginia advertising and consumer-protection controls issue until the next annual review. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
VA -> va-conduct-advertising-disclosures-lock-ins-prohibited-practices
Exam Tip
Virginia conduct questions test MLO ads and unique identifiers, false or misleading material terms, third-party fee handling, servicing-transfer notices, adverse-event reports, preapproval disclosures, licensed and sponsored origination, application NMLS IDs, outsourcing controls, and lock-in or commitment agreements.
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?
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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?
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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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