A loan originator asks a borrower to assign wages in connection with a mortgage loan. What is the best conclusion under Arizona loan originator law or AZDIFI guidance?
Correct Answer
A) Arizona prohibits accepting an assignment of the borrower wages or salary and receiving or disbursing monies in servicing or arranging a mortgage loan.
Arizona prohibits accepting an assignment of the borrower wages or salary and receiving or disbursing monies in servicing or arranging a mortgage loan. Arizona prohibits a loan originator from accepting an assignment of the borrower's wages or salary and from receiving or disbursing monies in servicing or arranging a mortgage loan.
Why This Is the Correct Answer
Arizona prohibits accepting an assignment of the borrower wages or salary and receiving or disbursing monies in servicing or arranging a mortgage loan. Arizona prohibits a loan originator from accepting an assignment of the borrower's wages or salary and from receiving or disbursing monies in servicing or arranging a mortgage loan.
Why the Other Options Are Wrong
Option B: Use another jurisdiction's approval as a substitute for the Arizona requirement.
Use another jurisdiction's approval as a substitute for the Arizona requirement. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Treat the requirement as waived because the borrower or employer agrees.
Treat the requirement as waived because the borrower or employer agrees. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Assume another state's approval automatically satisfies the Arizona requirement.
Assume another state's approval automatically satisfies the Arizona requirement. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
AZ -> az-advertising-compensation-and-prohibited-acts
Exam Tip
Wage assignments and money handling are Arizona prohibited-act traps.
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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