A practice question asks about servicing fee schedule and default communication. Which answer best matches the official North Carolina rule?
Correct Answer
A) NC servicers must file servicing fee schedules, file requested activity reports, and act in good faith to inform and negotiate with borrowers after delinquency or default.
NC servicers must file servicing fee schedules, file requested activity reports, and act in good faith to inform and negotiate with borrowers after delinquency or default. North Carolina servicers must file a current schedule of servicing-related costs and fees, file requested activity reports with the Commissioner, and act in good faith to inform and negotiate with borrowers after delinquency or default.
Why This Is the Correct Answer
NC servicers must file servicing fee schedules, file requested activity reports, and act in good faith to inform and negotiate with borrowers after delinquency or default. North Carolina servicers must file a current schedule of servicing-related costs and fees, file requested activity reports with the Commissioner, and act in good faith to inform and negotiate with borrowers after delinquency or default.
Why the Other Options Are Wrong
Option B: 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.
Option C: Assume the North Carolina requirement does not apply to this training scenario.
Assume the North Carolina requirement does not apply to this training scenario. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Treat advertising and consumer-protection controls as satisfied by borrower consent alone.
Treat advertising and consumer-protection controls as satisfied by borrower consent alone. 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 servicing duties include reports, fee schedules, and good-faith default handling.
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
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