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Which scenario would allow an MLO to maintain both federal registration AND state licensing simultaneously?

Correct Answer

D) None of these scenarios are permissible under SAFE Act requirements

The SAFE Act prohibits dual registration/licensing. An MLO cannot maintain both federal registration and state licensing simultaneously, regardless of employment arrangements. They must choose one path based on their primary employer type.

Answer Options
A
Working part-time for both a federally registered bank and a state-licensed mortgage company
B
Being employed by a credit union that also owns a separate mortgage company subsidiary
C
Serving as a loan officer for a bank while also working as an independent contractor
D
None of these scenarios are permissible under SAFE Act requirements

Why This Is the Correct Answer

The SAFE Act prohibits dual registration/licensing. An MLO cannot maintain both federal registration and state licensing simultaneously, regardless of employment arrangements. They must choose one path based on their primary employer type.

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