A mortgage company asks a state compliance officer to validate a Wisconsin loan-originator transfer involving licensing and NMLS authority. Which statement is reliable?
Correct Answer
D) Wisconsin DFI says a Mortgage Broker License is required for compensation or expected compensation when a person assists or holds out as able to assist another in obtaining.
Wisconsin DFI says a Mortgage Broker License is required for compensation or expected compensation when a person assists or holds out as able to assist another in obtaining or applying for a residential mortgage loan, or engages in table funding without underwriting or closing the loan.
Why This Is the Correct Answer
Wisconsin DFI says a Mortgage Broker License is required for compensation or expected compensation when a person assists or holds out as able to assist another in obtaining. This is correct because Wisconsin DFI says a Mortgage Broker License is required for compensation or expected compensation when a person assists or holds out as able to assist another in obtaining or applying for a residential mortgage loan, or engages in table funding without underwriting or closing the loan.
Why the Other Options Are Wrong
Option A: Handle licensing and NMLS authority with an informal note rather than the required license, disclosure, filing, or record.
Handle licensing and NMLS authority 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 B: Use another jurisdiction's approval as a substitute for the Wisconsin requirement.
Use another jurisdiction's approval as a substitute for the Wisconsin requirement. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Treat the requirement as waived because the borrower or employer agrees.
Treat the requirement as waived because the borrower or employer agrees. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
WI -> licensing and NMLS authority
Exam Tip
Identify the Wisconsin 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 Wisconsin state requirement controls
- -Treating Wisconsin 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?
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Which statement correctly distinguishes a license suspension from a license revocation?
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Which fact most directly supports disciplinary action against an MLO rather than merely a request for additional application information?
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