A Washington quality-control reviewer is reviewing an MLO sponsorship update tied to licensing and NMLS authority. Which rule should be applied?
Correct Answer
C) 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: Treat sponsorship and employment status as optional because the company has a general Washington compliance policy.
Treat sponsorship and employment status as optional because the company has a general Washington compliance policy. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option B: Postpone the Washington sponsorship and employment status issue until the next annual review.
Postpone the Washington sponsorship and employment status issue until the next annual review. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: 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.
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
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?
An MLO license application asks whether the applicant has been the subject of a regulatory order. The applicant has a recent consent order that falls within the question. What is the proper response?
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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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