West Virginia Mortgage Law Practice Test

The Commissioner may use each of the following as the basis for the determination that a mortgage loan originator applicant is not financially responsible, EXCEPT:

1. Failure to pay child support

2. Insufficient income

3. Multiple serious delinquencies over the past 18 months on several credit cards

4. Outstanding judgments

The correct answer is: Failure to pay child support

The correct choice, which is based on the context of mortgage loan origination regulations, highlights that child support obligations are generally not included when assessing the financial responsibility of an applicant. While failure to pay child support can reflect on a person’s personal situation, it is often not a direct indicator of their professional financial responsibility in the context of mortgage lending. On the other hand, insufficient income, multiple serious delinquencies on credit cards, and outstanding judgments are all significant factors that clearly impact a mortgage loan originator's ability to manage finances effectively. These factors demonstrate a pattern of financial instability or inability to meet obligations, which directly relate to their responsibilities in managing financial transactions and upholding the trust of clients in the lending process.