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State mortgage regulatory agencies are required to have examination authority over MLOs. Which of the following best describes the minimum scope of this authority under the SAFE Act framework?

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

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Correct answer: The authority to supervise MLO conduct and take action against those who violate state and federal mortgage laws

Under the SAFE Act and model state law, state regulatory agencies must — at minimum — have the power to supervise MLOs, examine their activities, and take disciplinary action (including license suspension, revocation, or non-renewal) against those who violate mortgage laws. State agencies do not audit federal tax returns as a routine regulatory tool, cannot set national interest rates, and do not make individual loan approval decisions — that responsibility rests with lenders.

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