A Washington file is paused during a loan-originator transfer because of licensing and NMLS authority. Which statement clears the compliance question?
Correct Answer
D) Under WAC 208-660-300, only the borrower may submit a written request to transfer selected loan-file information to another.
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
Under WAC 208-660-300, only the borrower may submit a written request to transfer selected loan-file information to another. 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 A: Treat consumer consent as a cure for a prohibited or missing compliance step.
Treat consumer consent as a cure for a prohibited or missing compliance step. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option B: Treat the timing or filing requirement as optional if the transaction appears low risk.
Treat the timing or filing requirement as optional if the transaction appears low risk. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Assume the Washington requirement does not apply to this loan-originator transfer.
Assume the Washington requirement does not apply to this loan-originator transfer. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
WA -> wa-definitions-exemptions-and-activity-scope
Exam Tip
Washington definition and exemption items usually turn on role, compensation, and whether the person crosses into rates or terms.
Common Mistakes to Avoid
- -Using a national baseline answer when Washington has a state-specific rule
- -Confusing DFI guidance, RCW requirements, and WAC implementation details
- -Treating temporary authority, remote work, or exemptions as blanket permission
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