A loan originator employed by a mortgage banker proposes a loan below the employer minimum. What is the best conclusion under Arizona loan originator law or AZDIFI guidance?
Correct Answer
C) Arizona prohibits a loan originator from making or negotiating for compensation a loan below the employer minimum or a loan not secured by real-property lien interest unless employed by a consumer lender.
An Arizona loan originator may not make, negotiate, or offer to make or negotiate for compensation a loan below the employer's minimum amount or a loan not secured by real-property lien interest unless employed by a consumer lender.
Why This Is the Correct Answer
An Arizona loan originator may not make, negotiate, or offer to make or negotiate for compensation a loan below the employer's minimum amount or a loan not secured by real-property lien interest unless employed by a consumer lender.
Why the Other Options Are Wrong
Option A: Use a branch onboarding review exception instead of satisfying the rule before activity continues.
Use a branch onboarding review 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 B: Close or renew first, then decide whether the branch onboarding review needs a compliance correction.
Close or renew first, then decide whether the branch onboarding review needs a compliance correction. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Proceed before the required Arizona license, sponsorship, disclosure, record, or approval is in place.
Proceed before the required Arizona license, sponsorship, disclosure, record, or approval is in place. 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 tests employer authority and collateral restrictions.
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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