An unlicensed Virginia firm advertises in 2026 as a mortgage broker while closing no loans at all. Assuming no exemption applies, does holding out as a mortgage broker require a license before any loans close?
Correct Answer
B) Prohibited: holding out to the public needs a license as much as doing it
No person may engage in business as a mortgage lender or broker, or hold himself out to the general public to be one, unless first licensed under the chapter. Other choices: the holding out limb does not wait for business; naming a licensed partner does not license the firm; and no consumer response is required. Source: Va. Code § 6.2-1601(A)
Why This Is the Correct Answer
No person may engage in business as a mortgage lender or broker, or hold himself out to the general public to be one, unless first licensed under the chapter. Other choices: the holding out limb does not wait for business; naming a licensed partner does not license the firm; and no consumer response is required. Source: Va. Code § 6.2-1601(A)
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