In a supervisory review in Washington, a review analyst checks a staff-training update against the state-specific MLO rule. What should the file reflect?
Correct Answer
A) Washington allows loan-file transfer only on the borrower's written request and requires timely transmission.
Under WAC 208-660-300, only the borrower may submit a written request to transfer selected loan-file information to another mortgage broker or lender, and the licensed mortgage broker must transmit it within 5 business days after receiving the request.
Why This Is the Correct Answer
Washington allows loan-file transfer only on the borrower's written request and requires timely transmission. This is correct because Under WAC 208-660-300, only the borrower may submit a written request to transfer selected loan-file information to another mortgage broker or lender, and the licensed mortgage broker must transmit it within 5 business days after receiving the request.
Why the Other Options Are Wrong
Option B: Answer from the topic label instead of the rule text.
Answer from the topic label instead of the rule text. is not correct because the state rule supports: Washington allows loan-file transfer only on the borrower's written request and requires timely transmission.
Option C: Let the file proceed because the company has written procedures.
Let the file proceed because the company has written procedures. is not correct because the state rule supports: Washington allows loan-file transfer only on the borrower's written request and requires timely transmission.
Option D: Substitute a training example for the state's required condition.
Substitute a training example for the state's required condition. is not correct because the state rule supports: Washington allows loan-file transfer only on the borrower's written request and requires timely transmission.
Memory Technique
Washington: the state-specific MLO rule -> use the exact state rule in the explanation.
Exam Tip
Match the Washington fact pattern to the specific the state-specific MLO rule rule; do not answer from a generic state or federal assumption.
Common Mistakes to Avoid
- -Treating a Washington the state-specific MLO rule rule as a generic national mortgage rule
- -Choosing a familiar licensing answer that is not supported by the official authority
- -Ignoring the exact condition stated in the explanation
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?
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