A practice question asks about Chapter 45 servicing obligations. Which answer best matches the official North Carolina rule?
Correct Answer
D) NC requires compliance with RESPA servicing duties and mortgage servicer obligations under Article 10 of Chapter 45.
NC requires compliance with RESPA servicing duties and mortgage servicer obligations under Article 10 of Chapter 45. North Carolina prohibited-acts provisions require compliance with RESPA servicing transfer, escrow-account administration, borrower inquiry response requirements, and applicable Chapter 45 servicer obligations.
Why This Is the Correct Answer
NC requires compliance with RESPA servicing duties and mortgage servicer obligations under Article 10 of Chapter 45. North Carolina prohibited-acts provisions require compliance with RESPA servicing transfer, escrow-account administration, borrower inquiry response requirements, and applicable Chapter 45 servicer obligations.
Why the Other Options Are Wrong
Option A: Use a consumer complaint response exception instead of satisfying the rule before activity continues.
Use a consumer complaint response 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 B: Close or renew first, then decide whether the consumer complaint response needs a compliance correction.
Close or renew first, then decide whether the consumer complaint response needs a compliance correction. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Proceed before the required North Carolina license, sponsorship, disclosure, record, or approval is in place.
Proceed before the required North Carolina license, sponsorship, disclosure, record, or approval is in place. 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 compliance can involve both RESPA and Chapter 45.
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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