A compliance manager is updating the Virginia MLO checklist for records, reports, and required notices. Which statement belongs in the checklist?
Correct Answer
A) Virginia licensees must keep required records, reports, notices, and filings current.
Virginia MLO bonds must be continuously maintained, conditioned on written agreements, accurate accounting for funds, and compliance with Chapter 17 and applicable law, and injured persons may proceed on the bond subject to the penal sum.
Why This Is the Correct Answer
Virginia licensees must keep required records, reports, notices, and filings current. This is correct because Virginia MLO bonds must be continuously maintained, conditioned on written agreements, accurate accounting for funds, and compliance with Chapter 17 and applicable law, and injured persons may proceed on the bond subject to the penal sum.
Why the Other Options Are Wrong
Option B: Use only the federal baseline and ignore the separate Virginia state requirement.
Use only the federal baseline and ignore the separate Virginia state requirement. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Apply the rule only after the Virginia regulator has already opened an examination.
Apply the rule only after the Virginia regulator has already opened an examination. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Skip the Virginia requirement because the company already follows general SAFE Act procedures.
Skip the Virginia 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
VA -> va-bonds-records-call-reports-exams-notices
Exam Tip
Virginia bond and record questions test MLO bond coverage, inactive status when bond coverage is missing, bond-volume tiers, 60-day deficient application abandonment, quarterly call reports, 5-day sponsorship notices, 10-day address notices, 3-year company record retention, transaction journals, 30-day Bureau responses, and secure disposal.
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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