A Washington operations lead audits a file for servicing conduct. Which statement is best supported?
Correct Answer
B) Washington residential mortgage loan servicers must handle borrower payments and escrow amounts according to statutory servicing requirements and applicable federal law.
Washington residential mortgage loan servicers must handle borrower payments and escrow amounts according to statutory servicing requirements and applicable federal law.
Why This Is the Correct Answer
Washington residential mortgage loan servicers must handle borrower payments and escrow amounts according to statutory servicing requirements and applicable federal law.
Why the Other Options Are Wrong
Option A: Skip documentation because the advertising approval appears routine.
Skip documentation because the advertising approval appears routine. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Rely on prior mortgage experience instead of the stated licensing or compliance requirement.
Rely on prior mortgage experience instead of the stated licensing or compliance requirement. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Continue the activity and document the issue only if a complaint is later filed.
Continue the activity and document the issue only if a complaint is later filed. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
WA -> wa-servicing-examination-investigation-and-enforcement
Exam Tip
For Washington regulator questions, DFI authority includes examinations, investigations, records access, directives, subpoenas, sanctions, and restitution.
Common Mistakes to Avoid
- -Using a national baseline answer when Washington has a state-specific rule
- -Confusing DFI guidance, RCW requirements, and WAC implementation details
- -Treating temporary authority, remote work, or exemptions as blanket permission
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