A new hire will work on Washington mortgage files involving advertising and consumer-protection controls. Which rule should the supervisor emphasize?
Correct Answer
A) Washington generally prohibits a mortgage broker from receiving compensation unless the borrower actually obtains a loan on agreed terms, and a loan originator may not accept a fee.
Washington generally prohibits a mortgage broker from receiving compensation unless the borrower actually obtains a loan on agreed terms, and a loan originator may not accept a fee, commission, or compensation from borrowers in connection with loan preparation, negotiation, or brokering.
Why This Is the Correct Answer
Washington generally prohibits a mortgage broker from receiving compensation unless the borrower actually obtains a loan on agreed terms, and a loan originator may not accept a fee. This is correct because Washington generally prohibits a mortgage broker from receiving compensation unless the borrower actually obtains a loan on agreed terms, and a loan originator may not accept a fee, commission, or compensation from borrowers in connection with loan preparation, negotiation, or brokering.
Why the Other Options Are Wrong
Option B: 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.
Option C: Handle advertising and consumer-protection controls with an informal note rather than the required license, disclosure, filing, or record.
Handle advertising and consumer-protection controls with an informal note rather than the required license, disclosure, filing, or record. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Use another jurisdiction's approval as a substitute for the Washington requirement.
Use another jurisdiction's approval as a substitute for the Washington requirement. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
WA -> state mortgage compliance
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
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