A mortgage company is preparing for a Colorado supervisory exam on temporary authority. Which statement should it apply?
Correct Answer
A) Colorado temporary authority eligibility also requires NMLS TA eligibility, employee status and sponsorship by a Colorado NMLS-registered mortgage company, and no listed denial, revocation, suspension, cease-and-desist, or disqualifying criminal action.
Colorado temporary authority eligibility also requires NMLS TA eligibility, employee status and sponsorship by a Colorado NMLS-registered mortgage company, and no listed denial, revocation, suspension, cease-and-desist, or disqualifying criminal action.
Why This Is the Correct Answer
Colorado temporary authority eligibility also requires NMLS TA eligibility, employee status and sponsorship by a Colorado NMLS-registered mortgage company, and no listed denial, revocation, suspension, cease-and-desist, or disqualifying criminal action.
Why the Other Options Are Wrong
Option B: Handle temporary authority with an informal note rather than the required license, disclosure, filing, or record.
Handle temporary authority with an informal note rather than the required license, disclosure, filing, or record. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Use another jurisdiction's approval as a substitute for the Colorado requirement.
Use another jurisdiction's approval as a substitute for the Colorado requirement. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Treat the requirement as waived because the borrower or employer agrees.
Treat the requirement as waived because the borrower or employer agrees. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
CO -> co-temporary-authority-insurance-bond-and-status
Exam Tip
Colorado temporary-authority and insurance questions usually hinge on 7 business days, 120 calendar days, responsible MLO supervision, bond tier, E&O limit, or active 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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