Which statement accurately describes the requirement for a principal broker within a mortgage brokerage?

Question: Which statement accurately describes the requirement for a principal broker within a mortgage brokerage?

Answer options:

• The principal broker must solely handle the accounting functions of the brokerage. ✅ Every licensed mortgage brokerage must designate a principal broker who is responsible for supervising the brokerage's activities and ensuring compliance with the MBLAA.
• A principal broker is only required if the brokerage has more than 10 mortgage agents.
• The principal broker's primary role is to originate all mortgage applications for the brokerage.

Correct answer: Every licensed mortgage brokerage must designate a principal broker who is responsible for supervising the brokerage's activities and ensuring compliance with the MBLAA.

Explanation: The MBLAA mandates that every licensed mortgage brokerage must have a designated principal broker. This individual holds a crucial role in overseeing the brokerage's operations, ensuring compliance with the Act, and supervising its agents.