A Washington operations lead audits a file for licensing status. Which statement is best supported?
Correct Answer
B) A Washington licensed mortgage broker is liable for violating conduct by the designated broker, loan originator, or other licensed mortgage broker employed or engaged by the licensed mortgage broker.
A Washington licensed mortgage broker is liable for violating conduct by the designated broker, loan originator, or other licensed mortgage broker employed or engaged by the licensed mortgage broker.
Why This Is the Correct Answer
A Washington licensed mortgage broker is liable for violating conduct by the designated broker, loan originator, or other licensed mortgage broker employed or engaged by the licensed mortgage broker.
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 C: 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 -> wa-prohibited-practices-disclosures-and-compensation
Exam Tip
Washington prohibited-practice questions often test timing, borrower compensation, document blanks, appraiser pressure, or misleading advertising.
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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