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Under state mortgage licensing law, an MLO who makes a materially false statement on a license application is subject to which of the following consequences?

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

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Correct answer: License denial, revocation, or suspension as a disciplinary action

Making a materially false statement on a mortgage license application is one of the most universally recognized grounds for disciplinary action under state mortgage laws, including the CSBS/AARMR Model State Law. The regulator may deny the application or, if the license has already been issued, revoke or suspend it. "License denial, revocation, or suspension as a disci..." is incorrect because a false statement on an application is a serious offense that goes beyond a warning for a first offense. "Mandatory referral to a consumer credit counseling a..." is incorrect because consumer credit counseling is irrelevant to MLO misconduct of this type. "A 30-day suspension of NMLS access only, with the li..." is incorrect because a false application statement typically affects the license itself, not just NMLS system access.

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