State law requires a licensee to make mortgage records available to the regulator on request regardless of their location or custody. A licensee keeps its files with an out-of-state vendor and asks for 45 days to retrieve them. Does that storage arrangement remove the licensee's responsibility to comply with the regulator's production requirements?
Correct Answer
B) The licensee remains responsible for producing the records when asked
B. The licensee remains responsible for producing the requested records. The stated duty follows the licensee despite outsourced storage. Minnesota expressly permits access regardless of location or custody and requires records to be available upon request. Scope and exceptions: The question does not establish an exact nationwide response period or decide whether an extension will be granted. Follow the applicable request and jurisdiction; Minnesota is the cited example. Source: Subdivisions 2(3) and 4, 2025 edition — https://www.revisor.mn.gov/statutes/cite/58A.15
Why This Is the Correct Answer
B. The licensee remains responsible for producing the requested records. The stated duty follows the licensee despite outsourced storage. Minnesota expressly permits access regardless of location or custody and requires records to be available upon request. Scope and exceptions: The question does not establish an exact nationwide response period or decide whether an extension will be granted. Follow the applicable request and jurisdiction; Minnesota is the cited example.
Why the Other Options Are Wrong
Option A: Storage in another state removes the records from that state reach
Location does not defeat the stated authority.
Option C: The regulator must contact the vendor directly for the 3 files sought
The licensee cannot force the regulator to deal only with its vendor.
Option D: The 45-day period is reasonable, since the vendor holds the records
The vendor arrangement alone does not establish entitlement to 45 days.
Exam Tip
Arrange vendor access so outsourcing does not prevent regulatory production.
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