Which of the following mortgage loan originators is required to obtain a state license rather than federal registration?
Correct Answer
C) An MLO employed by an independent mortgage company
MLOs employed by independent mortgage companies that are not federally insured depository institutions must obtain state licenses. MLOs at federally insured institutions (national banks, federal credit unions, federal savings associations) only need federal registration through NMLS.
Why This Is the Correct Answer
MLOs employed by independent mortgage companies that are not federally insured depository institutions must obtain state licenses. MLOs at federally insured institutions (national banks, federal credit unions, federal savings associations) only need federal registration through NMLS.
More UST Questions
If a state regulatory authority finds violations during an examination, what factors typically influence the severity of enforcement action?
Under the SAFE Act, an individual who works for a federally chartered bank and takes mortgage applications must:
An MLO under investigation claims that certain requested documents are protected by attorney-client privilege because they were prepared in consultation with legal counsel. How should the state regulator respond?
Which scenario represents the MOST serious violation of appraisal independence requirements?
An MLO's license is suspended for 6 months, but after 3 months, the MLO demonstrates completion of remedial actions. Can the regulator lift the suspension early?
People Also Study
Federal Mortgage-Related Laws
23% of exam
General Mortgage Knowledge
23% of exam
Mortgage Loan Origination Activities
25% of exam
Ethics, Fraud & Consumer Protection
17% of exam