A state compliance officer handling a North Carolina annual compliance meeting needs the compliant answer for licensing and NMLS authority. What should the reviewer choose?
Correct Answer
A) NC requires licensees to keep records that support compliance review, preserve required records, and make books and records available to the Commissioner upon request.
NC requires licensees to keep records that support compliance review, preserve required records, and make books and records available to the Commissioner upon request. North Carolina requires licensees to maintain books, accounts, records, and documents to enable the Commissioner to determine compliance, and records must be available to the Commissioner.
Why This Is the Correct Answer
NC requires licensees to keep records that support compliance review, preserve required records, and make books and records available to the Commissioner upon request. North Carolina requires licensees to maintain books, accounts, records, and documents to enable the Commissioner to determine compliance, and records must be available to the Commissioner.
Why the Other Options Are Wrong
Option B: 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.
Option C: Let the MLO originate while waiting for the North Carolina status, sponsorship, or renewal issue to be corrected.
Let the MLO originate while waiting for the North Carolina status, sponsorship, or renewal issue to be corrected. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Let production staff decide whether licensing and NMLS authority matters for the file.
Let production staff decide whether licensing and NMLS authority matters for the file. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
NC -> nc-identifier-remote-branch-and-records
Exam Tip
NC records must be kept and available for regulatory review.
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
More UST Questions
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