A licensing coordinator handling a Washington regulator exam preparation needs the compliant answer for licensing and NMLS authority. What should the reviewer choose?
Correct Answer
B) WAC 208-660-108 defines a Washington loan originator as a natural person who, for compensation or gain or expectation of it, takes a residential mortgage loan application or offers.
WAC 208-660-108 defines a Washington loan originator as a natural person who, for compensation or gain or expectation of it, takes a residential mortgage loan application or offers or negotiates residential mortgage loan terms, including short sale transactions and residential mortgage loan modification services.
Why This Is the Correct Answer
WAC 208-660-108 defines a Washington loan originator as a natural person who, for compensation or gain or expectation of it, takes a residential mortgage loan application or offers. This is correct because WAC 208-660-108 defines a Washington loan originator as a natural person who, for compensation or gain or expectation of it, takes a residential mortgage loan application or offers or negotiates residential mortgage loan terms, including short sale transactions and residential mortgage loan modification services.
Why the Other Options Are Wrong
Option A: Skip documentation because the new-license application appears routine.
Skip documentation because the new-license application 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 -> licensing and NMLS authority
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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