Uniform State Test (UST) · 11% of the SAFE exammedium
Correct answer: The temporary authority terminates upon the denial of the license application
Under the SAFE Act's TAO provisions, temporary authority to originate is directly tied to the status of the underlying license application. If the state denies the application, the temporary authority terminates — the MLO no longer has authority to originate in that state. This prevents individuals who fail to qualify from using TAO as a perpetual work authorization. "The temporary authority converts to a provisional li..." is incorrect because there is no 90-day grace period after denial; termination is tied to the denial. "The MLO may continue to originate only for loans alr..." is incorrect because TAO does not provide a carve-out for loans already in process after a denial. "The temporary authority terminates upon the denial o..." is incorrect because denial results in termination, not conversion to another license type.
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