Uniform State Content (SAFE Act)Question 377 of 400
If a state regulator finds that a licensed MLO violated the SAFE Act or state law, which of the following disciplinary actions may the regulator generally impose?
a.Suspend or revoke the license, impose civil monetary penalties, and issue orders to cease and desist
b.Order the MLO to serve a mandatory federal prison sentence directly
c.Increase the borrower's interest rate as a penalty
d.Automatically transfer the MLO's clients to the regulator
Explanation
State regulators have authority to take administrative disciplinary actions, including denying, suspending, or revoking a license, imposing fines or civil money penalties, and issuing cease-and-desist orders. Criminal sentencing is handled by courts, not regulators, and regulators do not alter loan terms or reassign clients.
Law Reference: SAFE ActPractice all 400 questions free — no signup required.
Related questions on this topic
- Which organizations jointly developed and maintain the Nationwide Multistate Licensing System (NMLS)?
- A state-licensed MLO changes employers, moving from one mortgage company to another. Regarding the NMLS unique identifier, the MLO:
- Which of the following is prohibited conduct for a mortgage loan originator under the SAFE Act's standards?
- Under the SAFE Act, the term 'residential mortgage loan' generally refers to a loan that is:
- Of the 20 hours of required pre-licensing education, how many hours must cover federal law and regulations?
- A candidate fails the SAFE MLO test three consecutive times. Under NMLS test rules, when may the candidate next attempt the test?
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against NMLS SAFE Mortgage Loan Originator National Test · How we review