A North Carolina file is paused during a company policy update because of continuing education and renewal. Which statement clears the compliance question?
Correct Answer
C) NC requires a qualified NMLS-approved written test covering ethics, federal law, state law, fraud, consumer protection, nontraditional mortgage products, and fair lending, with at least 75 percent to pass.
NC requires a qualified NMLS-approved written test covering ethics, federal law, state law, fraud, consumer protection, nontraditional mortgage products, and fair lending, with at least 75 percent to pass. North Carolina testing requires a qualified written test approved through NMLS that measures ethics, federal law, state law, fraud, consumer protection, nontraditional mortgage products, and fair lending, with a passing score of at least 75 percent.
Why This Is the Correct Answer
NC requires a qualified NMLS-approved written test covering ethics, federal law, state law, fraud, consumer protection, nontraditional mortgage products, and fair lending, with at least 75 percent to pass. North Carolina testing requires a qualified written test approved through NMLS that measures ethics, federal law, state law, fraud, consumer protection, nontraditional mortgage products, and fair lending, with a passing score of at least 75 percent.
Why the Other Options Are Wrong
Option A: 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.
Option B: Continue the activity and document the issue only if a complaint is later filed.
Continue the activity and document the issue only if a complaint is later filed. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Let the MLO originate while waiting for the North Carolina status, sponsorship, or renewal issue to be corrected.
Let the MLO originate while waiting for the North Carolina status, sponsorship, or renewal issue to be corrected. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
NC -> nc-education-testing-and-renewal
Exam Tip
NC uses the 75 percent passing threshold.
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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