For a Virginia loan-originator transfer, a branch supervisor is training staff on licensing and NMLS authority. Which answer should be used?
Correct Answer
B) Virginia mortgage advertising must meet the state advertising and consumer-protection rule.
Virginia mortgage lender and broker advertisements must clearly disclose licensed name, NMLS ID and NMLS Consumer Access address, rate-change risk when rates are advertised, source of existing-loan information when not obtained from the consumer, and must not be deceptive or imply nonexistent government, depository, noteholder, or lienholder affiliation.
Why This Is the Correct Answer
Virginia mortgage advertising must meet the state advertising and consumer-protection rule. This is correct because Virginia mortgage lender and broker advertisements must clearly disclose licensed name, NMLS ID and NMLS Consumer Access address, rate-change risk when rates are advertised, source of existing-loan information when not obtained from the consumer, and must not be deceptive or imply nonexistent government, depository, noteholder, or lienholder affiliation.
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 C: Use another jurisdiction's approval as a substitute for the Virginia requirement.
Use another jurisdiction's approval as a substitute for the Virginia requirement. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: 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
VA -> va-enforcement-discipline-penalties-consumer-protection
Exam Tip
Virginia enforcement questions test advertising disclosure retention, false government or noteholder impressions, flipping and default prohibitions, settlement statement and Regulation Z disclosure, broker compensation and duty, escrow rules, MLO discipline, 15-day reports, 21-day notice, 14-day hearing requests, $2500 penalties, Class 6 felony exposure, Attorney General referral, restitution, and private remedies.
Common Mistakes to Avoid
- -Using generic federal mortgage facts when Virginia Code, Virginia Administrative Code, SCC/BFI, or NMLS state-specific rules are being tested
- -Confusing Virginia individual MLO licensing or sponsorship with mortgage lender, broker, branch, remote-location, or company requirements
- -Treating Virginia bond, record, advertising, disclosure, lock-in, escrow, reporting, or enforcement requirements as optional
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