A loan file reviewer documents a Washington consumer complaint response and needs one rule for advertising and consumer-protection controls. Which statement belongs in the file?
Correct Answer
B) Washington applies the stated financial-responsibility, bond, credit-history, or net-worth requirement.
If a borrower cannot obtain a loan and has paid in full for an appraisal, title report, or credit report, Washington requires copies to be given to the borrower and originals transmitted to another broker or lender as directed, subject to statutory conditions.
Why This Is the Correct Answer
Washington applies the stated financial-responsibility, bond, credit-history, or net-worth requirement. This is correct because If a borrower cannot obtain a loan and has paid in full for an appraisal, title report, or credit report, Washington requires copies to be given to the borrower and originals transmitted to another broker or lender as directed, subject to statutory conditions.
Why the Other Options Are Wrong
Option A: 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 C: 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.
Option D: Apply the Washington rule only to company licenses and never to individual MLO activity.
Apply the Washington rule only to company licenses and never to individual MLO activity. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
WA -> records, reports, and required notices
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
More UST Questions
In a pricing desk question, an audit analyst sees facts tied to Prohibited Misrepresentation. What should the file reflect?
An applicant previously had an MLO license revoked by a state regulator. Under the SAFE Act minimum standards for a new state-licensed MLO license, which statement is correct?
Which statement correctly distinguishes a license suspension from a license revocation?
A state regulator has issued an order suspending an MLO's authority effective immediately. The MLO has filed an appeal, but no stay has been granted. What should the MLO do?
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An MLO's license status in NMLS changes to suspended, with no stay or reinstatement shown. What is the immediate operational effect?
Which fact most directly supports disciplinary action against an MLO rather than merely a request for additional application information?
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