A North Carolina file is paused during an MLO sponsorship update because of continuing education and renewal. Which statement clears the compliance question?
Correct Answer
A) NC requires a qualified NMLS-approved written test covering ethics, federal law, state law, fraud, consumer protection, nontraditional mortgage products, and fair lending, with at least 75 percent to pass.
NC requires a qualified NMLS-approved written test covering ethics, federal law, state law, fraud, consumer protection, nontraditional mortgage products, and fair lending, with at least 75 percent to pass. North Carolina testing requires a qualified written test approved through NMLS that measures ethics, federal law, state law, fraud, consumer protection, nontraditional mortgage products, and fair lending, with a passing score of at least 75 percent.
Why This Is the Correct Answer
NC requires a qualified NMLS-approved written test covering ethics, federal law, state law, fraud, consumer protection, nontraditional mortgage products, and fair lending, with at least 75 percent to pass. North Carolina testing requires a qualified written test approved through NMLS that measures ethics, federal law, state law, fraud, consumer protection, nontraditional mortgage products, and fair lending, with a passing score of at least 75 percent.
Why the Other Options Are Wrong
Option B: Use an informal manager exception without updating the license, file, or required record.
Use an informal manager exception without updating the license, file, or required record. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Use a verbal explanation instead of the required license status, disclosure, record, or filing.
Use a verbal explanation instead of the required license status, disclosure, record, or filing. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Use a loan-originator transfer exception instead of satisfying the rule before activity continues.
Use a loan-originator transfer exception instead of satisfying the rule before activity continues. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
NC -> nc-education-testing-and-renewal
Exam Tip
NC uses the 75 percent passing threshold.
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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