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An Alabama audit analyst is reviewing a disciplinary-risk review tied to licensing and NMLS authority. Which rule should be applied?

Correct Answer

B) Alabama mortgage licensing includes surety bond, recovery fund, net worth, or financial responsibility coverage as required by state law or regulator guidance.

Alabama mortgage licensing includes surety bond, recovery fund, net worth, or financial responsibility coverage as required by state law or regulator guidance.

Answer Options
A
Treat consumer consent as a cure for a prohibited or missing compliance step.
B
Alabama mortgage licensing includes surety bond, recovery fund, net worth, or financial responsibility coverage as required by state law or regulator guidance.
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 NMLS filing review.

Why This Is the Correct Answer

Alabama mortgage licensing includes surety bond, recovery fund, net worth, or financial responsibility coverage as required by state law or regulator guidance.

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