A servicer employee only performs loss mitigation on existing loans. What is the best conclusion under North Carolina MLO law or NCCOB guidance?
Correct Answer
B) An individual acting solely as a loss mitigation specialist is excluded from the NC MLO definition unless the applicable CFPB rule changes that treatment.
An individual acting solely as a loss mitigation specialist is excluded from the NC MLO definition unless the applicable CFPB rule changes that treatment. An individual acting solely as a loss mitigation specialist is excluded from the North Carolina MLO definition unless the applicable CFPB rule changes that treatment.
Why This Is the Correct Answer
An individual acting solely as a loss mitigation specialist is excluded from the NC MLO definition unless the applicable CFPB rule changes that treatment. An individual acting solely as a loss mitigation specialist is excluded from the North Carolina MLO definition unless the applicable CFPB rule changes that treatment.
Why the Other Options Are Wrong
Option A: Treat the requirement as waived because the borrower or employer agrees.
Treat the requirement as waived because the borrower or employer agrees. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Assume another state's approval automatically satisfies the North Carolina requirement.
Assume another state's approval automatically satisfies the North Carolina requirement. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Apply the North Carolina rule only to company licenses and never to individual MLO activity.
Apply the North Carolina rule only to company licenses and never to individual MLO activity. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
NC -> nc-license-requirement-nmls-and-sponsorship
Exam Tip
Do not turn loss mitigation work into origination unless the activity crosses the line.
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
In a pricing desk question, an audit analyst sees facts tied to Prohibited Misrepresentation. What should the file reflect?
An applicant previously had an MLO license revoked by a state regulator. Under the SAFE Act minimum standards for a new state-licensed MLO license, which statement is correct?
Which statement correctly distinguishes a license suspension from a license revocation?
A state regulator has issued an order suspending an MLO's authority effective immediately. The MLO has filed an appeal, but no stay has been granted. What should the MLO do?
An MLO license application asks whether the applicant has been the subject of a regulatory order. The applicant has a recent consent order that falls within the question. What is the proper response?
Why does NMLS maintain licensing and enforcement information that participating regulators can access?
A regulator issues a final license suspension without giving the MLO notice of the alleged violation or any opportunity to respond, even though applicable law requires both. What issue is presented?
A regulator finds that an MLO charged consumers prohibited fees. Which set of actions is consistent with the enforcement tools contemplated by Regulation H?
An MLO's license status in NMLS changes to suspended, with no stay or reinstatement shown. What is the immediate operational effect?
Which fact most directly supports disciplinary action against an MLO rather than merely a request for additional application information?
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