Which statement is most accurate about advertising unavailable or misleading terms under North Carolina MLO law or NCCOB guidance?
Correct Answer
A) NC advertising restrictions prohibit advertising unavailable mortgage terms and unfair, misleading, or deceptive advertising related to residential mortgage solicitations.
NC advertising restrictions prohibit advertising unavailable mortgage terms and unfair, misleading, or deceptive advertising related to residential mortgage solicitations. North Carolina advertising restrictions include not advertising unavailable or misleading mortgage terms and not engaging in bait-and-switch or other prohibited advertising practices.
Why This Is the Correct Answer
NC advertising restrictions prohibit advertising unavailable mortgage terms and unfair, misleading, or deceptive advertising related to residential mortgage solicitations. North Carolina advertising restrictions include not advertising unavailable or misleading mortgage terms and not engaging in bait-and-switch or other prohibited advertising practices.
Why the Other Options Are Wrong
Option B: 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-servicing-prohibited-acts-advertising-and-high-cost
Exam Tip
NC advertising must reflect available, nonmisleading terms.
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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