Which statement is most accurate about reinstatement limit under North Carolina MLO law or NCCOB guidance?
Correct Answer
D) NC prohibits refusing to reinstate a delinquent loan after timely sufficient payment, but this reinstatement right is available no more than twice in any 24-month period.
NC prohibits refusing to reinstate a delinquent loan after timely sufficient payment, but this reinstatement right is available no more than twice in any 24-month period. North Carolina prohibits refusing to reinstate a delinquent loan after timely sufficient payment, but the reinstatement right is available no more than twice in any 24-month period.
Why This Is the Correct Answer
NC prohibits refusing to reinstate a delinquent loan after timely sufficient payment, but this reinstatement right is available no more than twice in any 24-month period. North Carolina prohibits refusing to reinstate a delinquent loan after timely sufficient payment, but the reinstatement right is available no more than twice in any 24-month period.
Why the Other Options Are Wrong
Option A: 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 B: Use a company policy update exception instead of satisfying the rule before activity continues.
Use a company policy update exception instead of satisfying the rule before activity continues. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Close or renew first, then decide whether the company policy update needs a compliance correction.
Close or renew first, then decide whether the company policy update needs a compliance correction. 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
The NC reinstatement rule has a twice-in-24-months limit.
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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