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During an Alabama branch onboarding review, a quality-control reviewer must resolve a question about licensing and NMLS authority. Which statement should control?

Correct Answer

B) Alabama unlicensed residential mortgage origination, brokering, lending, servicing, or related mortgage activity can trigger state enforcement when no exemption applies.

Alabama unlicensed residential mortgage origination, brokering, lending, servicing, or related mortgage activity can trigger state enforcement when no exemption applies.

Answer Options
A
Treat consumer consent as a cure for a prohibited or missing compliance step.
B
Alabama unlicensed residential mortgage origination, brokering, lending, servicing, or related mortgage activity can trigger state enforcement when no exemption applies.
C
Treat the timing or filing requirement as optional if the transaction appears low risk.
D
Assume the Alabama requirement does not apply to this MLO sponsorship update.

Why This Is the Correct Answer

Alabama unlicensed residential mortgage origination, brokering, lending, servicing, or related mortgage activity can trigger state enforcement when no exemption applies.

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