West Virginia Mortgage Law Practice Test

The business cards prepared by Frank violate the West Virginia SAFE Mortgage Licensing Act because:

1. Loan processors are prohibited from using business cards to advertise

2. The cards are not printed using the minimum font size required by law

3. The use of business cards for advertising is strictly prohibited in West Virginia

4. They include prohibited advertising language

The correct answer is: Loan processors are prohibited from using business cards to advertise

Frank's business cards violate the West Virginia SAFE Mortgage Licensing Act because loan processors are prohibited from using business cards to advertise. The Act specifically regulates the practices of loan originators and related professionals, and one of its provisions addresses the types of advertising that are permissible. In this context, loan processors are generally not allowed to engage in activities that could mislead consumers about their role and qualifications, which includes using business cards for promotional purposes. This restriction aims to maintain clear distinctions between different roles in the mortgage process, preventing confusion about who is acting as a loan originator versus who is merely assisting in processing. By adhering to these regulations, the intent is to protect consumers and ensure transparency in the mortgage lending process. The other options focus on potential technicalities regarding font size or advertising language, yet they do not address the fundamental restriction imposed on loan processors regarding the use of business cards for advertising, which is the core issue in this scenario.