For a Virginia company policy update, a state compliance officer is training staff on licensing and NMLS authority. Which answer should be used?
Correct Answer
B) Virginia licensees must keep required records, reports, notices, and filings current.
Virginia MLO suspension, revocation, and cease-and-desist procedures generally require 21 days written notice and allow a written hearing request within 14 days, while civil penalties may reach $2500 per violation and each day of unlicensed MLO activity is a separate violation.
Why This Is the Correct Answer
Virginia licensees must keep required records, reports, notices, and filings current. This is correct because Virginia MLO suspension, revocation, and cease-and-desist procedures generally require 21 days written notice and allow a written hearing request within 14 days, while civil penalties may reach $2500 per violation and each day of unlicensed MLO activity is a separate violation.
Why the Other Options Are Wrong
Option A: 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.
Option C: Assume another state's approval automatically satisfies the Virginia requirement.
Assume another state's approval automatically satisfies the Virginia requirement. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Apply the Virginia rule only to company licenses and never to individual MLO activity.
Apply the Virginia 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.
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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