A mortgage team is building a Washington procedure for advertising and consumer-protection controls. Which statement matches the state requirement?
Correct Answer
C) Washington generally prohibits a mortgage broker from receiving compensation unless the borrower actually obtains a loan on agreed terms, and a loan originator may not accept a fee.
Washington generally prohibits a mortgage broker from receiving compensation unless the borrower actually obtains a loan on agreed terms, and a loan originator may not accept a fee, commission, or compensation from borrowers in connection with loan preparation, negotiation, or brokering.
Why This Is the Correct Answer
Washington generally prohibits a mortgage broker from receiving compensation unless the borrower actually obtains a loan on agreed terms, and a loan originator may not accept a fee. This is correct because Washington generally prohibits a mortgage broker from receiving compensation unless the borrower actually obtains a loan on agreed terms, and a loan originator may not accept a fee, commission, or compensation from borrowers in connection with loan preparation, negotiation, or brokering.
Why the Other Options Are Wrong
Option A: Postpone the Washington advertising and consumer-protection controls issue until the next annual review.
Postpone the Washington 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.
Option B: Use only the federal baseline and ignore the separate Washington state requirement.
Use only the federal baseline and ignore the separate Washington state requirement. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Apply the rule only after the Washington regulator has already opened an examination.
Apply the rule only after the Washington regulator has already opened an examination. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
WA -> state mortgage compliance
Exam Tip
Identify the Washington 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 Washington state requirement controls
- -Treating Washington licensing, reporting, advertising, records, or enforcement duties as optional
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