During a North Carolina regulator exam preparation, an operations lead must resolve a question about licensing and NMLS authority. Which statement should control?
Correct Answer
D) NCCOB guidance says tablefunded loans must be assigned to the lender within one business day of funding or a mortgage lender license is required.
NCCOB guidance says tablefunded loans must be assigned to the lender within one business day of funding or a mortgage lender license is required. NCCOB FAQ says tablefunded loans must be assigned within one business day of funding or the company is acting as a lender and must hold a lender license.
Why This Is the Correct Answer
NCCOB guidance says tablefunded loans must be assigned to the lender within one business day of funding or a mortgage lender license is required. NCCOB FAQ says tablefunded loans must be assigned within one business day of funding or the company is acting as a lender and must hold a lender license.
Why the Other Options Are Wrong
Option A: Delay the North Carolina requirement until after the loan closes or the renewal period ends.
Delay the North Carolina 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.
Option B: 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 C: 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.
Memory Technique
NC -> nc-identifier-remote-branch-and-records
Exam Tip
One business day is the key tablefunding timing point.
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?
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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?
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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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