Which of the following is not an affirmative duty of a principal lending manager?

• A. Ensuring that licensees do not offer high-cost mortgage loans
• B. Maintaining licensee records
• C. Providing annual training
• D. Submitting required reports

Answer: (B)

Affirmative duties are actions the principal lending manager must actively perform to supervise licensees and maintain compliance. Actively preventing licensees from offering high-cost mortgage loans is one of those duties because the PLM is charged with enforcing lending standards and protecting consumers. Providing annual training is another proactive obligation to keep licensees up to date on laws, policies, and best practices. Submitting required reports is also an active compliance task, ensuring the regulatory body receives the necessary information about licensee activity and compliance.

Maintaining licensee records, on the other hand, is not an explicit proactive duty of the PLM. Recordkeeping is typically a responsibility of the licensees or the firm’s internal compliance program, not a standalone duty the PLM must perform as part of oversight. The PLM can review records as needed, but it isn’t required to maintain all licensee records as an affirmative duty.