Before approving the new-license application, an Arizona training manager checks advertising and consumer-protection controls. Which conclusion is best supported?
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: Use an informal manager exception without updating the license, file, or required record.
Use an informal manager exception without updating the license, file, or required record. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option B: 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 C: Use a company policy update exception instead of satisfying the rule before activity continues.
Use a company policy update exception instead of satisfying the rule before activity continues. 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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