Engaging in which will result in automatic revocation of the license?

• A. Mortgage fraud
• B. Late payment of fees
• C. Filing late annual reports
• D. Advertising without consent

Answer: (A)

Engaging in mortgage fraud triggers automatic revocation because it directly breaches the fundamental duty of honesty in lending. Mortgage fraud involves knowingly misrepresenting or concealing material facts in loan applications, underwriting, appraisals, or related processes to obtain a loan or better terms. This kind of deception undermines the integrity of the financial system and harms consumers and lenders, so regulators treat it as an explicit, automatic grounds for removing a license to protect the public and maintain trust in the industry.

Late payment of fees, filing late annual reports, or advertising without consent may lead to penalties or suspensions, but they do not inherently constitute the same level of fraud and, typically, do not result in automatic license revocation.