Before approving the loan-originator transfer, a North Carolina operations lead checks licensing and NMLS authority. Which conclusion is best supported?
Correct Answer
A) NC requires licensees to keep records that support compliance review, preserve required records, and make books and records available to the Commissioner upon request.
NC requires licensees to keep records that support compliance review, preserve required records, and make books and records available to the Commissioner upon request. North Carolina requires licensees to maintain books, accounts, records, and documents to enable the Commissioner to determine compliance, and records must be available to the Commissioner.
Why This Is the Correct Answer
NC requires licensees to keep records that support compliance review, preserve required records, and make books and records available to the Commissioner upon request. North Carolina requires licensees to maintain books, accounts, records, and documents to enable the Commissioner to determine compliance, and records must be available to the Commissioner.
Why the Other Options Are Wrong
Option B: 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.
Option C: 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 D: 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.
Memory Technique
NC -> nc-identifier-remote-branch-and-records
Exam Tip
NC records must be kept and available for regulatory review.
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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