A lender prepares a Washington checklist for records and call reports. Which rule belongs in the checklist?
Correct Answer
B) Washington director or designee may investigate and examine mortgage brokers or loan originators as often as necessary, and mortgage brokers must make books and records available.
Washington director or designee may investigate and examine mortgage brokers or loan originators as often as necessary, and mortgage brokers must make books and records available.
Why This Is the Correct Answer
Washington director or designee may investigate and examine mortgage brokers or loan originators as often as necessary, and mortgage brokers must make books and records available.
Why the Other Options Are Wrong
Option A: Use another jurisdiction's approval as a substitute for the Washington requirement.
Use another jurisdiction's approval as a substitute for the Washington requirement. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Treat the requirement as waived because the borrower or employer agrees.
Treat the requirement as waived because the borrower or employer agrees. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Assume another state's approval automatically satisfies the Washington requirement.
Assume another state's approval automatically satisfies the Washington requirement. 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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