A practice question asks about basic preapplication information. Which answer best matches the official North Carolina rule?
Correct Answer
B) Basic preapplication intake can stay outside MLO activity when it does not include credit-history review, social security number, credit score, employment history, or specific rates.
Basic preapplication intake can stay outside MLO activity when it does not include credit-history review, social security number, credit score, employment history, or specific rates. North Carolina defines preapplication activity to exclude offering or negotiating specific mortgage loan rates or terms, reviewing credit history, and other facts that move beyond simple intake.
Why This Is the Correct Answer
Basic preapplication intake can stay outside MLO activity when it does not include credit-history review, social security number, credit score, employment history, or specific rates. North Carolina defines preapplication activity to exclude offering or negotiating specific mortgage loan rates or terms, reviewing credit history, and other facts that move beyond simple intake.
Why the Other Options Are Wrong
Option A: Let production staff decide whether sponsorship and employment status matters for the file.
Let production staff decide whether sponsorship and employment status matters for the file. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Skip documentation because the remote-work procedure appears routine.
Skip documentation because the remote-work procedure appears routine. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Rely on prior mortgage experience instead of the stated licensing or compliance requirement.
Rely on prior mortgage experience instead of the stated licensing or compliance requirement. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
NC -> nc-definitions-exemptions-and-activity-scope
Exam Tip
The NC preapplication line is crossed by specific rates, credit score, SSN, or deeper credit/employment 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
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?
People Also Study
Federal Mortgage-Related Laws
24% of exam
General Mortgage Knowledge
20% of exam
Mortgage Loan Origination Activities
27% of exam
Ethics, Fraud & Consumer Protection
18% of exam