A quality-control reviewer documents a Michigan supervisory file review and needs one rule for sponsorship and employment status. Which statement belongs in the file?
Correct Answer
C) Michigan generally prohibits a person from acting as a mortgage broker, mortgage lender, or mortgage servicer without the license or registration required by the Mortgage Brokers, Lenders, and Servicers Licensing Act.
Michigan generally prohibits a person from acting as a mortgage broker, mortgage lender, or mortgage servicer without the license or registration required by the Mortgage Brokers, Lenders, and Servicers Licensing Act.
Why This Is the Correct Answer
Michigan generally prohibits a person from acting as a mortgage broker, mortgage lender, or mortgage servicer without the license or registration required by the Mortgage Brokers, Lenders, and Servicers Licensing Act.
Why the Other Options Are Wrong
Option A: Assume the Michigan requirement does not apply to this mortgage operations checklist.
Assume the Michigan requirement does not apply to this mortgage operations checklist. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option B: Treat sponsorship and employment status as satisfied by borrower consent alone.
Treat sponsorship and employment status as satisfied by borrower consent alone. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Delay the Michigan requirement until after the loan closes or the renewal period ends.
Delay the Michigan requirement until after the loan closes or the renewal period ends. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
MI -> mi-company-licenses-sponsorship-nmls-servicing
Exam Tip
Michigan company questions test DIFS licensing, NMLS filings, broker, lender, servicer authority, company renewal, license verification, employee or loan officer activity, and individual MLO overlay rules.
Common Mistakes to Avoid
- -Using generic federal mortgage facts when Michigan state-specific rules are being tested
- -Confusing Michigan individual MLO licensing with company, branch, sponsor, bond, or record requirements
- -Treating Michigan state-law conduct, advertising, reporting, servicing, or enforcement requirements as optional
More UST Questions
In a pricing desk question, an audit analyst sees facts tied to Prohibited Misrepresentation. What should the file reflect?
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