Which statement is most accurate about servicer baseline duties under North Carolina MLO law or NCCOB guidance?
Correct Answer
B) NC servicers must safeguard borrower funds, follow reasonable borrower instructions, act with reasonable skill, care, and diligence, file required reports, and comply with applicable federal servicing duties.
NC servicers must safeguard borrower funds, follow reasonable borrower instructions, act with reasonable skill, care, and diligence, file required reports, and comply with applicable federal servicing duties. North Carolina mortgage loan servicers must safeguard and account for borrower funds, follow reasonable borrower instructions, act with reasonable skill/care/diligence, file required reports, and comply with applicable federal laws.
Why This Is the Correct Answer
NC servicers must safeguard borrower funds, follow reasonable borrower instructions, act with reasonable skill, care, and diligence, file required reports, and comply with applicable federal servicing duties. North Carolina mortgage loan servicers must safeguard and account for borrower funds, follow reasonable borrower instructions, act with reasonable skill/care/diligence, file required reports, and comply with applicable federal laws.
Why the Other Options Are Wrong
Option A: Skip documentation because the mortgage operations checklist appears routine.
Skip documentation because the mortgage operations checklist appears routine. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Rely on prior mortgage experience instead of the stated licensing or compliance requirement.
Rely on prior mortgage experience instead of the stated licensing or compliance requirement. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Continue the activity and document the issue only if a complaint is later filed.
Continue the activity and document the issue only if a complaint is later filed. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
NC -> nc-servicing-prohibited-acts-advertising-and-high-cost
Exam Tip
Servicing duties are affirmative duties, not just prohibited acts.
Common Mistakes to Avoid
- -Using a national baseline answer when North Carolina has a state-specific rule
- -Confusing company licensing, MLO licensing, and sponsorship
- -Treating an exemption or temporary authority rule as a blanket waiver
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