A sponsorship reviewer documents an Arizona record-retention audit and needs one rule for sponsorship and employment status. Which statement belongs in the file?
Correct Answer
C) A natural person may not act as an Arizona loan originator unless licensed under the Arizona loan originator article.
A natural person may not act as an Arizona loan originator unless licensed under the Arizona loan originator article. A natural person may not act as an Arizona loan originator unless licensed under Article 4 of A.R.S. Title 6, Chapter 9.
Why This Is the Correct Answer
A natural person may not act as an Arizona loan originator unless licensed under the Arizona loan originator article. A natural person may not act as an Arizona loan originator unless licensed under Article 4 of A.R.S. Title 6, Chapter 9.
Why the Other Options Are Wrong
Option A: Postpone the Arizona sponsorship and employment status issue until the next annual review.
Postpone the Arizona sponsorship and employment status 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 D: 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-license-requirement-nmls-and-sponsorship
Exam Tip
Arizona uses a person-before-activity licensing rule.
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
More UST Questions
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