If a licensee makes a loan without determining the borrower's ability to repay, what action can the Director not take?

When evaluating the question about a licensee making a loan without determining the borrower's ability to repay, it's essential to understand the regulatory framework that governs lending practices. In situations where a licensee fails to assess a borrower's ability to repay a loan, they may be subject to various disciplinary actions by the Director of the appropriate regulatory authority.

Choosing "approve a license" as the correct answer is appropriate because the Director can only approve licenses under conditions that comply with legal and regulatory standards. If a licensee has demonstrated improper lending practices—such as failing to evaluate a borrower's repayment ability—this behavior would likely disqualify them from receiving approval for a new license or having their existing license maintained. Meanwhile, actions such as suspending, denying, or revoking a license are permitted consequences that can be enacted in response to violations of responsible lending practices.

Thus, the action that cannot be taken regarding a licensee who made a loan without considering repayment ability is that the Director cannot approve a license for such an individual, as doing so would contradict the rules and expectations surrounding responsible lending and consumer protection.