Uniform State Test (UST) · 11% of the SAFE exammedium
Correct answer: States have authority to establish net worth requirements as a means of ensuring licensees can meet financial obligations to consumers
Under the SAFE Act and model state law, state regulatory agencies have broad authority to require that licensees demonstrate financial responsibility, which may include maintaining minimum net worth levels. This ensures that mortgage businesses have some financial foundation to meet obligations to consumers. "Federal law sets the exact minimum net worth for all..." is incorrect — the SAFE Act does not set a specific federal net worth dollar amount for all MLOs; requirements vary by state. "States have authority to establish net worth require..." is incorrect — net worth requirements are not limited to previously suspended licensees; they apply broadly. "Net worth requirements under the SAFE Act are set ex..." is incorrect — net worth requirements for state licensees are set by state agencies, not exclusively by the CFPB.
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