A Maryland quality-control reviewer reviews a exam response about Maryland net tangible benefit examples include lower before submission. Which answer is best supported?
Correct Answer
C) Maryland net tangible benefit examples include lower interest rate, lower payment, shorter amortization, adjustable-to-fixed change, eliminating negative amortization, balloon payment, or PMI, cash-out greater than closing costs, avoiding foreclosure, and consolidating existing loans.
Maryland net tangible benefit examples include lower interest rate, lower payment, shorter amortization, adjustable-to-fixed change, eliminating negative amortization, balloon payment, or PMI, cash-out greater than closing costs, avoiding foreclosure, and consolidating existing loans.
Why This Is the Correct Answer
Maryland net tangible benefit examples include lower interest rate, lower payment, shorter amortization, adjustable-to-fixed change, eliminating negative amortization, balloon payment, or PMI, cash-out greater than closing costs, avoiding foreclosure, and consolidating existing loans.
Why the Other Options Are Wrong
Option A: Treat consumer consent as a cure for a prohibited or missing compliance step.
Treat consumer consent as a cure for a prohibited or missing compliance step. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option B: 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 D: Assume the Maryland requirement does not apply to this record-retention audit.
Assume the Maryland requirement does not apply to this record-retention audit. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
MD -> md-duty-of-care-ntb-and-consumer-protection
Exam Tip
Maryland consumer-protection questions often test good faith and fair dealing, reasonable care, refinance net tangible benefit, worksheet support, and higher-priced mortgage alternatives.
Common Mistakes to Avoid
- -Using a national baseline answer when Maryland has a state-specific rule
- -Confusing NMLS workflow, Maryland Office of Financial Regulation requirements, COMAR rules, and statutory requirements
- -Treating temporary authority, inactive status, or exemptions as blanket permission
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