Mortgage Loan Originator (MLO) Licensing Practice Test

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Prepare for the Mortgage Loan Originator Licensing Test with engaging quizzes. Study with multiple-choice questions that include explanations and suggestions. Ace your exam with confidence!

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Which loan types fall under the supervision of the Division of Consumer Finance?

Only mortgage lenders
Collection agencies and money services businesses
Only mortgage brokers
Commercial banks and credit unions

The correct answer is: Collection agencies and money services businesses

The correct answer identifies that collection agencies and money services businesses are among the types of loans and financial transactions that fall under the supervision of the Division of Consumer Finance. This supervisory role is essential for ensuring that these entities comply with applicable regulations and protect consumers from unethical practices. Collection agencies are often involved in the recovery of debts, while money services businesses include entities that provide services such as currency exchange and money transfers. These operations can have significant impacts on consumers' financial well-being, and therefore, it's crucial for a regulatory body like the Division of Consumer Finance to monitor their activities. This oversight assists in promoting fair lending practices, safeguarding consumer rights, and ensuring transparency within the financial services sector. Understanding the broader scope of the Division's supervision, including regulating collection agencies and money services businesses, underscores the importance of consumer protection in various financial contexts beyond just mortgage lenders or brokers.