West Virginia Mortgage Law Practice Test

The Commissioner of the Division of Financial Institutions does not have the authority to:

1. Conduct audits of licensees

2. Enforce compliance with the law

3. Iissue cease and desist orders

4. Request records

The correct answer is: Conduct audits of licensees

The Commissioner of the Division of Financial Institutions is tasked with overseeing financial institutions and ensuring they adhere to applicable laws and regulations. This role includes various powers that are essential for maintaining the integrity and proper functioning of financial entities within the state. While conducting audits is a standard practice to ensure compliance and operational integrity, the specific power to perform audits is typically delegated to staff or designated agents rather than being a direct authority of the Commissioner themselves. This means the Commissioner may not have the direct authority to conduct audits but rather to ensure that such audits are carried out as part of the overall regulatory framework. In contrast, the authority to enforce compliance with the law, issue cease and desist orders, and request records are all critical functions of the Commissioner. These powers allow the Commissioner to take necessary actions to ensure that all licensed entities are operating within the bounds of the law, thus protecting consumers and maintaining the stability of the financial system.