A Washington compliance officer reviews documentation for advertising and prohibited practices. Which result is compliant?
Correct Answer
D) A Washington mortgage broker or loan originator must provide full written disclosure of required fees and costs within 3 business days after receiving a loan application.
A Washington mortgage broker or loan originator must provide full written disclosure of required fees and costs within 3 business days after receiving a loan application.
Why This Is the Correct Answer
A Washington mortgage broker or loan originator must provide full written disclosure of required fees and costs within 3 business days after receiving a loan application.
Why the Other Options Are Wrong
Option A: 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.
Option B: Apply the rule only after the Washington regulator has already opened an examination.
Apply the rule only after the Washington regulator has already opened an examination. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Skip the Washington requirement because the company already follows general SAFE Act procedures.
Skip the Washington requirement because the company already follows general SAFE Act procedures. 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
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