A sponsorship reviewer is updating Illinois procedures for company policy update and flags licensing and NMLS authority. Which answer is accurate?
Correct Answer
B) Illinois 765 ILCS 77/70 establishes the predatory lending database program in Cook County with a July 1, 2008 inception date and expands it to Kane, Peoria, and Will.
Illinois 765 ILCS 77/70 establishes the predatory lending database program in Cook County with a July 1, 2008 inception date and expands it to Kane, Peoria, and Will counties with a July 1, 2010 inception date; the program applies to covered mortgage applications made or taken on or after the relevant inception date.
Why This Is the Correct Answer
Illinois 765 ILCS 77/70 establishes the predatory lending database program in Cook County with a July 1, 2008 inception date and expands it to Kane, Peoria, and Will. This is correct because Illinois 765 ILCS 77/70 establishes the predatory lending database program in Cook County with a July 1, 2008 inception date and expands it to Kane, Peoria, and Will counties with a July 1, 2010 inception date; the program applies to covered mortgage applications made or taken on or after the relevant inception date.
Why the Other Options Are Wrong
Option A: The Illinois APLD applies statewide to every mortgage loan regardless of county or property type.
The Illinois APLD applies statewide to every mortgage loan regardless of county or property type. is not correct because it does not match the Illinois rule applied in this scenario.
Option C: If APLD counseling advises against a loan, Illinois law automatically cancels the borrower application.
If APLD counseling advises against a loan, Illinois law automatically cancels the borrower application. is not correct because it does not match the Illinois rule applied in this scenario.
Option D: Illinois high risk home loans may include prepayment penalties and financed points as long as the borrower signs a disclosure.
Illinois high risk home loans may include prepayment penalties and financed points as long as the borrower signs a disclosure. is not correct because it does not match the Illinois rule applied in this scenario.
Memory Technique
IL -> licensing and NMLS authority
Exam Tip
Identify the Illinois state requirement first, then choose the answer that preserves licensing, disclosure, record, supervision, or enforcement compliance.
Common Mistakes to Avoid
- -Using a generic national rule when the Illinois state requirement controls
- -Treating Illinois licensing, reporting, advertising, records, or enforcement duties as optional
More UST Questions
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