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A staff member asks whether a Massachusetts procedure for advertising and consumer-protection controls is compliant. Which answer is correct?

Correct Answer

D) Massachusetts mortgage advertising must meet the state advertising and consumer-protection rule.

Massachusetts prohibits a contract or solicitation under which the MLO or covered person may earn a fee or commission through best efforts to obtain a loan even though no loan is actually obtained for the borrower.

Answer Options
A
Postpone the Massachusetts advertising and consumer-protection controls issue until the next annual review.
B
Use only the federal baseline and ignore the separate Massachusetts state requirement.
C
Apply the rule only after the Massachusetts regulator has already opened an examination.
D
Massachusetts mortgage advertising must meet the state advertising and consumer-protection rule.

Why This Is the Correct Answer

Massachusetts prohibits a contract or solicitation under which the MLO or covered person may earn a fee or commission through best efforts to obtain a loan even though no loan is actually obtained for the borrower.

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