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A Kentucky audit analyst is reviewing a renewal checklist tied to licensing and NMLS authority. Which rule should be applied?

Correct Answer

B) Kentucky unlicensed residential mortgage origination, brokering, lending, servicing, or related mortgage activity can trigger state enforcement when no exemption applies.

Kentucky unlicensed residential mortgage origination, brokering, lending, servicing, or related mortgage activity can trigger state enforcement when no exemption applies.

Answer Options
A
Postpone the Kentucky continuing education and renewal issue until the next annual review.
B
Kentucky unlicensed residential mortgage origination, brokering, lending, servicing, or related mortgage activity can trigger state enforcement when no exemption applies.
C
Use only the federal baseline and ignore the separate Kentucky state requirement.
D
Apply the rule only after the Kentucky regulator has already opened an examination.

Why This Is the Correct Answer

Kentucky unlicensed residential mortgage origination, brokering, lending, servicing, or related mortgage activity can trigger state enforcement when no exemption applies.

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