A compliance memo in New York about an examiner response needs one rule for temporary authority. Which statement should be included?
Correct Answer
A) New York temporary authority depends on qualified employment or sponsorship, NMLS application submission, prior status, and no disqualifying history.
New York temporary authority requires employment by and sponsorship from a DFS licensed or registered mortgage banker or broker and a work location licensed or registered by DFS, plus qualifying prior federal registration or state licensure.
Why This Is the Correct Answer
New York temporary authority depends on qualified employment or sponsorship, NMLS application submission, prior status, and no disqualifying history. This is correct because New York temporary authority requires employment by and sponsorship from a DFS licensed or registered mortgage banker or broker and a work location licensed or registered by DFS, plus qualifying prior federal registration or state licensure.
Why the Other Options Are Wrong
Option B: Use a nearby licensing rule that does not address temporary authority.
Use a nearby licensing rule that does not address temporary authority. is not correct because the state rule supports: New York temporary authority depends on qualified employment or sponsorship, NMLS application submission, prior status, and no disqualifying history.
Option C: Clear an examiner response based only on internal approval history.
Clear an examiner response based only on internal approval history. is not correct because the state rule supports: New York temporary authority depends on qualified employment or sponsorship, NMLS application submission, prior status, and no disqualifying history.
Option D: Document the file after closing instead of applying the rule now.
Document the file after closing instead of applying the rule now. is not correct because the state rule supports: New York temporary authority depends on qualified employment or sponsorship, NMLS application submission, prior status, and no disqualifying history.
Memory Technique
New York: temporary authority -> use the exact state rule in the explanation.
Exam Tip
Match the New York fact pattern to the specific temporary authority rule; do not answer from a generic state or federal assumption.
Common Mistakes to Avoid
- -Treating a New York temporary authority rule as a generic national mortgage rule
- -Choosing a familiar licensing answer that is not supported by the official authority
- -Ignoring the exact condition stated in the explanation
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