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What is the correct escalation sequence for state enforcement actions against a licensed MLO?

Uniform State Test (UST) · 11% of the SAFE exameasy

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Correct answer: Warning letter → Consent order → Suspension → Revocation

The typical enforcement escalation from least to most severe: (1) Warning letter (informal guidance), (2) Consent order (formal agreement to comply with specific requirements), (3) Suspension (license temporarily disabled), (4) Revocation (permanent loss of license). Each step represents increased regulatory severity. A common exam mistake: assuming a cease and desist automatically suspends the license — it does not. Suspension and revocation are separate, more severe actions.

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