A small-volume originator and financing source each stay at 5 or fewer mortgage loans in the calendar year. What is the best conclusion under Arizona loan originator law or AZDIFI guidance?
Correct Answer
A) 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 B: Rely on prior mortgage experience instead of the stated licensing or compliance requirement.
Rely on prior mortgage experience instead of the stated licensing or compliance requirement. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Continue the activity and document the issue only if a complaint is later filed.
Continue the activity and document the issue only if a complaint is later filed. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Let the MLO originate while waiting for the Arizona status, sponsorship, or renewal issue to be corrected.
Let the MLO originate while waiting for the Arizona status, sponsorship, or renewal issue to be corrected. 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
More UST Questions
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