A Virginia quality-control reviewer is reviewing a supervisory file review tied to licensing and NMLS authority. Which rule should be applied?
Correct Answer
D) Virginia requires the stated mortgage records to be kept and available for regulator review.
Virginia company records must be kept separate from other business records, lender loan records are retained at least 3 years after final payment or sale, broker records are retained at least 3 years after a mortgage loan is made, and a mortgage loan transaction journal must track each application.
Why This Is the Correct Answer
Virginia requires the stated mortgage records to be kept and available for regulator review. This is correct because Virginia company records must be kept separate from other business records, lender loan records are retained at least 3 years after final payment or sale, broker records are retained at least 3 years after a mortgage loan is made, and a mortgage loan transaction journal must track each application.
Why the Other Options Are Wrong
Option A: Virginia treats bond coverage as optional if the MLO is sponsored or has passed the SAFE test.
Virginia treats bond coverage as optional if the MLO is sponsored or has passed the SAFE test. is not correct because it does not match the Virginia rule applied in this scenario.
Option B: Virginia allows MLOs to keep originating after sponsor termination while NMLS sponsorship is pending.
Virginia allows MLOs to keep originating after sponsor termination while NMLS sponsorship is pending. is not correct because it does not match the Virginia rule applied in this scenario.
Option C: Virginia mortgage records may be mixed with unrelated business records and destroyed normally once the file closes.
Virginia mortgage records may be mixed with unrelated business records and destroyed normally once the file closes. 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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