A policy analyst prepares a staff-training update for operations in Washington and needs the rule on Washington operations and needs the rule on fees and compensation. Which statement belongs there?
Correct Answer
A) Washington prohibits loan originators from being paid directly by the borrower or charging borrower compensation for LO activity.
Under WAC 208-660-300, a Washington loan originator may not be paid directly by the borrower and may not charge the borrower a fee, commission, or compensation for preparing, negotiating, or brokering a residential mortgage loan.
Why This Is the Correct Answer
Washington prohibits loan originators from being paid directly by the borrower or charging borrower compensation for LO activity. This is correct because Under WAC 208-660-300, a Washington loan originator may not be paid directly by the borrower and may not charge the borrower a fee, commission, or compensation for preparing, negotiating, or brokering a residential mortgage loan.
Why the Other Options Are Wrong
Option B: Use a nearby licensing rule that does not address Washington operations and needs the rule on fees and compensation.
Use a nearby licensing rule that does not address Washington operations and needs the rule on fees and compensation. is not correct because the state rule supports: Washington prohibits loan originators from being paid directly by the borrower or charging borrower compensation for LO activity.
Option C: Clear a staff-training update based only on internal approval history.
Clear a staff-training update based only on internal approval history. is not correct because the state rule supports: Washington prohibits loan originators from being paid directly by the borrower or charging borrower compensation for LO activity.
Option D: Document the file after closing instead of applying the rule now.
Document the file after closing instead of applying the rule now. is not correct because the state rule supports: Washington prohibits loan originators from being paid directly by the borrower or charging borrower compensation for LO activity.
Memory Technique
Washington: Washington operations and needs the rule on fees and compensation -> use the exact state rule in the explanation.
Exam Tip
Match the Washington fact pattern to the specific Washington operations and needs the rule on fees and compensation rule; do not answer from a generic state or federal assumption.
Common Mistakes to Avoid
- -Treating a Washington Washington operations and needs the rule on fees and compensation 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
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