A state mortgage regulator conducts an examination of a lender and finds repeated violations of the state's prohibited acts statute, including undisclosed fees and misrepresentations to borrowers. Which of the following enforcement tools is the state regulator most likely authorized to use?

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Issue a cease and desist order and impose civil money penalties State mortgage regulatory agencies have broad administrative enforcement authority, including the power to issue cease and desist orders, impose civil money penalties, require restitution to consumers, and suspend or revoke licenses. "Initiate criminal prosecution directly in federal court" is incorrect because state regulators do not file DOJ complaints on behalf of licensees — they may refer matters to the DOJ. "s behalf" is incorrect because state regulators cannot initiate federal criminal prosecutions; they may refer cases to state or federal prosecutors. "Issue a cease and desist order and impose civil mone..." is incorrect because only federal banking regulators (OCC, FDIC, Federal Reserve) have authority over federal charters — state regulators govern state-chartered entities.

A state mortgage regulator conducts an examination of a lender and finds repeated violations of the state's prohibited acts statute, including undisclosed fees and misrepresentations to borrowers. Which of the following enforcement tools is the state regulator most likely authorized to use?

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