Which statement is most accurate about five-or-fewer loan exclusion under Arizona loan originator law or AZDIFI guidance?
Correct Answer
D) Arizona excludes a person who originates 5 or fewer mortgage loans per calendar year if the financing source also makes 5 or fewer mortgage loans per calendar year.
Arizona excludes a person who originates 5 or fewer mortgage loans per calendar year if the financing source also makes 5 or fewer mortgage loans per calendar year. Arizona excludes a person who originates 5 or fewer mortgage loans per calendar year if the prospective financing source also makes 5 or fewer mortgage loans per calendar year.
Why This Is the Correct Answer
Arizona excludes a person who originates 5 or fewer mortgage loans per calendar year if the financing source also makes 5 or fewer mortgage loans per calendar year. Arizona excludes a person who originates 5 or fewer mortgage loans per calendar year if the prospective financing source also makes 5 or fewer mortgage loans per calendar year.
Why the Other Options Are Wrong
Option A: Delay the Arizona requirement until after the loan closes or the renewal period ends.
Delay the Arizona requirement until after the loan closes or the renewal period ends. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option B: Treat consumer consent as a cure for a prohibited or missing compliance step.
Treat consumer consent as a cure for a prohibited or missing compliance step. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Treat the timing or filing requirement as optional if the transaction appears low risk.
Treat the timing or filing requirement as optional if the transaction appears low risk. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
AZ -> az-definitions-exemptions-and-activity-scope
Exam Tip
Arizona has a two-sided 5-or-fewer test.
Common Mistakes to Avoid
- -Using a national baseline answer when Arizona has a state-specific rule
- -Confusing NMLS registration, Arizona licensure, and employer authority
- -Treating an exemption, temporary license, or bond rule as broader than written
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