Uniform State Content (SAFE Act)Question 396 of 400
A regulator issues a cease-and-desist order against an MLO. What does this order require the MLO to do?
a.Immediately increase continuing education hours
b.Pay off the borrower's outstanding loan balance
c.Transfer the license to a supervisor
d.Stop the specific conduct or activity that the regulator has determined violates the law
Explanation
A cease-and-desist order directs the MLO (or company) to immediately stop a specific act or practice found to violate licensing or consumer-protection laws. It is one of several administrative enforcement tools regulators use, alongside fines, suspension, and revocation.
Law Reference: SAFE ActPractice all 400 questions free — no signup required.
Related questions on this topic
- The pre-licensing education requirement under the SAFE Act must be completed through:
- Which of the following individuals is acting as a mortgage loan originator and would generally need to be licensed or registered?
- What is the purpose of requiring MLOs to disclose their unique identifier to consumers?
- How does the surety bond amount for a state-licensed MLO or company typically vary?
- If a state fails to enact a licensing system that meets the SAFE Act's minimum standards, what does the Act authorize?
- An MLO's license is revoked in one state due to fraud. Because of the NMLS unique identifier and shared system, what is the likely effect in other states?
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against NMLS SAFE Mortgage Loan Originator National Test · How we review