Which of the following statements about disciplinary actions against a California mortgage loan originator licensee is NOT true?

The statement regarding the automatic cessation of all origination activities until a decision is rendered is not true. In the context of disciplinary actions against a California mortgage loan originator licensee, there is no blanket rule that mandates a petitioner must stop all origination activities simply because a petition has been filed or an accusation is pending.

This understanding is essential for licensees who find themselves in disciplinary situations, as it allows them to continue operating in good faith while challenging an accusation. It highlights that the process allows for a licensee's ability to remain engaged in their professional activities pending the outcome, barring any specific order to the contrary.

In contrast, the other statements reflect accurate procedures related to disciplinary actions; they outline the rights of licensees to petition for penalties, the lack of requirement for a specific form for the petition, and the Commissioner's ability to grant a stay, which indicates that while licensees may engage in origination, there are mechanisms in place for managing the situation if necessary.