Mortgage Loan Originator (MLO) Licensing Practice Test

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Prepare for the Mortgage Loan Originator (MLO) Licensing Test. Study with flashcards and multiple-choice questions, each with hints and explanations. Get ready to succeed on your exam!

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What can a licensee who violates Florida's rules for loan modifications be liable for?

Monetary penalties only
Revocation of their license
Actual damages, attorney's fees, and court costs
Mandatory counseling courses

The correct answer is: Actual damages, attorney's fees, and court costs

In Florida, when a licensee violates the rules governing loan modifications, they can be held liable for actual damages, as well as any attorney's fees and court costs incurred as a result of their actions. This means that the affected parties have the right to seek compensation for financial losses directly resulting from the licensee's violation, in addition to recovering legal expenses associated with litigation. This liability serves as a protective measure for consumers, ensuring that they have recourse in the event that a licensee engages in conduct that is deemed harmful or unfair in the context of loan modifications. It underscores the importance of adhering to regulations, as the consequences are not only administrative but can involve significant financial liabilities that impact the licensee's practice and reputation. There are other potential repercussions for violations, but the specific focus of this option is on the financial and legal accountability that a licensee faces in such situations.