A state mortgage regulator discovers that an MLO licensed only in State A has been originating loans for borrowers in State B without obtaining a State B license. The regulator in State B investigates and takes action. Which of the following best describes the scope of State B's regulatory authority in this situation?

State B has no jurisdiction because the MLO holds a valid license in State A, which satisfies federal reciprocity requirements under the SAFE Act State B must defer to State A's regulator since the MLO is licensed there, and dual state action is prohibited under CSBS guidelines State B can take action against the MLO for unlicensed activity within State B, including suspension of licensing privileges and referral to other regulators State B's only remedy is to notify the NMLS, which will then coordinate enforcement across both states