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
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