Uniform State Test (UST) · 11% of the SAFE exammedium
Correct answer: She may not originate loans during this period because her license has lapsed and she is unlicensed
Under the SAFE Act, an MLO whose license has expired cannot legally originate loans. There is no federal grace period that allows origination activity after a license has lapsed. Until the license is formally reinstated following completion of CE and any other renewal requirements, she is considered unlicensed and must cease origination activity. "s license while her personal renewal is pending" is incorrect — there is no 30-day federal origination grace period for lapsed MLO licenses. "She may not originate loans during this period becau..." is incorrect — an individual's MLO license is personal; she cannot originate loans simply by working under a company license without her own active license. "She is automatically reinstated on January 1 as long..." is incorrect — the SAFE Act does not provide for automatic reinstatement upon completing CE; the state must process and reinstate the license.
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