A loan originator also wants compensation as a real estate salesperson in the same transaction. What is the best conclusion under Arizona loan originator law or AZDIFI guidance?
Correct Answer
D) Arizona dual real estate compensation requires a real estate license and employer disclosure at the time the mortgage loan application is received.
Arizona dual real estate compensation requires a real estate license and employer disclosure at the time the mortgage loan application is received. An Arizona loan originator may not collect real estate broker or salesperson compensation unless licensed under the real estate chapter and the employing mortgage broker or banker discloses dual compensation at the time the mortgage loan application is received.
Why This Is the Correct Answer
Arizona dual real estate compensation requires a real estate license and employer disclosure at the time the mortgage loan application is received. An Arizona loan originator may not collect real estate broker or salesperson compensation unless licensed under the real estate chapter and the employing mortgage broker or banker discloses dual compensation at the time the mortgage loan application is received.
Why the Other Options Are Wrong
Option A: Use a verbal explanation instead of the required license status, disclosure, record, or filing.
Use a verbal explanation instead of the required license status, disclosure, record, or filing. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option B: Use a remote-work procedure exception instead of satisfying the rule before activity continues.
Use a remote-work procedure exception instead of satisfying the rule before activity continues. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Close or renew first, then decide whether the remote-work procedure needs a compliance correction.
Close or renew first, then decide whether the remote-work procedure needs a compliance correction. 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
Arizona dual compensation needs both license status and application-time disclosure.
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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