A Washington MLO file raises a question about servicing conduct. What should the reviewer choose?
Correct Answer
A) 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 B: 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 C: 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.
Option D: Let the MLO originate while waiting for the Washington status, sponsorship, or renewal issue to be corrected.
Let the MLO originate while waiting for the Washington status, sponsorship, or renewal issue to be corrected. 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
More UST Questions
In a pricing desk question, an audit analyst sees facts tied to Prohibited Misrepresentation. What should the file reflect?
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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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