Engaging in which activity will result in automatic revocation of a mortgage license?

• A. Advertising violations
• B. Late renewal
• C. Failure to maintain records
• D. Mortgage fraud

Answer: (D)

Engaging in mortgage fraud is treated as an automatic ground for revoking a license because it directly violates the honesty and trust required of someone handling loans. Mortgage fraud involves knowingly misrepresenting or concealing facts to obtain or influence a loan, which undermines the entire lending process and public trust. Licensing bodies view this as so severe that it warrants immediate licensure termination rather than a staged disciplinary process.

The other issues, while serious, typically lead to sanctions that are not automatic revocations. Advertising violations can result in corrective actions or penalties, late renewals often trigger reminders, penalties, or temporary holds, and failing to maintain records can lead to investigations and sanctions as well, but these generally require a formal action or due process before revoking a license.