A mortgage company asks an audit analyst to validate a Colorado state-law refresher involving licensing and NMLS authority. Which statement is reliable?
Correct Answer
C) Colorado advertisements must clearly and conspicuously include at least one responsible party with an NMLS-approved registration number, the mortgage company name, and the responsible party's business phone number.
Colorado advertisements must clearly and conspicuously include at least one responsible party with an NMLS-approved registration number, the mortgage company name, and the responsible party's business phone number.
Why This Is the Correct Answer
Colorado advertisements must clearly and conspicuously include at least one responsible party with an NMLS-approved registration number, the mortgage company name, and the responsible party's business phone number.
Why the Other Options Are Wrong
Option A: Treat the timing or filing requirement as optional if the transaction appears low risk.
Treat the timing or filing requirement as optional if the transaction appears low risk. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option B: Assume the Colorado requirement does not apply to this state-law refresher.
Assume the Colorado requirement does not apply to this state-law refresher. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Treat licensing and NMLS authority as satisfied by borrower consent alone.
Treat licensing and NMLS authority as satisfied by borrower consent alone. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
CO -> co-advertising-disclosures-records-and-dual-status
Exam Tip
Colorado advertising and disclosure questions often test actual availability, responsible-party information, 3-business-day disclosure timing, 4-year records, or dual status.
Common Mistakes to Avoid
- -Using a national baseline answer when Colorado has a state-specific rule
- -Confusing NMLS workflow, Colorado E-license workflow, DRE guidance, and CCR requirements
- -Treating temporary authority, inactive status, or exemptions as blanket permission
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