A mortgage company asks a training manager to validate an Arizona new-license application involving advertising and consumer-protection controls. Which statement is reliable?
Correct Answer
D) An Arizona loan originator must make reasonable efforts to secure a reasonably advantageous loan considering all circumstances, including interest rates, charges, and repayment terms.
An Arizona loan originator must make reasonable efforts to secure a reasonably advantageous loan considering all circumstances, including interest rates, charges, and repayment terms. An Arizona loan originator must make reasonable efforts to secure a loan reasonably advantageous to the borrower considering all circumstances, including interest rates, charges, and repayment terms.
Why This Is the Correct Answer
An Arizona loan originator must make reasonable efforts to secure a reasonably advantageous loan considering all circumstances, including interest rates, charges, and repayment terms. An Arizona loan originator must make reasonable efforts to secure a loan reasonably advantageous to the borrower considering all circumstances, including interest rates, charges, and repayment terms.
Why the Other Options Are Wrong
Option A: Postpone the Arizona licensing and NMLS authority issue until the next annual review.
Postpone the Arizona licensing and NMLS authority issue until the next annual review. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option B: Use only the federal baseline and ignore the separate Arizona state requirement.
Use only the federal baseline and ignore the separate Arizona state requirement. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Apply the rule only after the Arizona regulator has already opened an examination.
Apply the rule only after the Arizona regulator has already opened an examination. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
AZ -> az-consumer-protection-and-recovery-claims
Exam Tip
Arizona has an affirmative reasonably advantageous loan duty.
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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