Who is responsible for paying the costs of an examination when the Director conducts one of a licensee?

The correct answer is that the licensee is responsible for paying the costs of an examination conducted by the Director. In the context of Rhode Island mortgage law, when regulatory authorities perform examinations of licensed individuals or businesses, the costs associated with these examinations are typically borne by the licensees themselves. This policy helps ensure that the entities under regulation have a vested interest in maintaining compliance with applicable laws and regulations. It also streamlines the process by preventing the use of state funds for oversight activities that are a part of the licensee's operational responsibilities.

The application fee generally pertains to the costs associated with the initial licensing process, while the state typically covers administrative expenses through broader budget mechanisms. The borrower, being a customer and not a licensed entity, does not bear these costs. All these points emphasize the accountability of licensees in maintaining the standards expected in the mortgage industry and contribute to the integrity and oversight efficacy provided by the regulatory body.