An operations supervisor receives a Virginia file during a branch procedure update and must apply the rule for licensing and NMLS authority. Which answer is defensible?
Correct Answer
D) 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: Postpone the Virginia licensing and NMLS authority issue until the next annual review.
Postpone the Virginia licensing and NMLS authority issue until the next annual review. is not correct because the governing rule requires the compliant answer shown in the explanation.
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.
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
More UST Questions
In a pricing desk question, an audit analyst sees facts tied to Prohibited Misrepresentation. What should the file reflect?
An applicant previously had an MLO license revoked by a state regulator. Under the SAFE Act minimum standards for a new state-licensed MLO license, which statement is correct?
Which statement correctly distinguishes a license suspension from a license revocation?
A state regulator has issued an order suspending an MLO's authority effective immediately. The MLO has filed an appeal, but no stay has been granted. What should the MLO do?
An MLO license application asks whether the applicant has been the subject of a regulatory order. The applicant has a recent consent order that falls within the question. What is the proper response?
Why does NMLS maintain licensing and enforcement information that participating regulators can access?
A regulator issues a final license suspension without giving the MLO notice of the alleged violation or any opportunity to respond, even though applicable law requires both. What issue is presented?
A regulator finds that an MLO charged consumers prohibited fees. Which set of actions is consistent with the enforcement tools contemplated by Regulation H?
An MLO's license status in NMLS changes to suspended, with no stay or reinstatement shown. What is the immediate operational effect?
Which fact most directly supports disciplinary action against an MLO rather than merely a request for additional application information?
People Also Study
Federal Mortgage-Related Laws
24% of exam
General Mortgage Knowledge
20% of exam
Mortgage Loan Origination Activities
27% of exam
Ethics, Fraud & Consumer Protection
18% of exam