A lender advertises rates it is not able to make available to a reasonable number of qualified applicants. What is the best conclusion under North Carolina MLO law or NCCOB guidance?
Correct Answer
C) NC advertising restrictions prohibit advertising unavailable mortgage terms and unfair, misleading, or deceptive advertising related to residential mortgage solicitations.
NC advertising restrictions prohibit advertising unavailable mortgage terms and unfair, misleading, or deceptive advertising related to residential mortgage solicitations. North Carolina advertising restrictions include not advertising unavailable or misleading mortgage terms and not engaging in bait-and-switch or other prohibited advertising practices.
Why This Is the Correct Answer
NC advertising restrictions prohibit advertising unavailable mortgage terms and unfair, misleading, or deceptive advertising related to residential mortgage solicitations. North Carolina advertising restrictions include not advertising unavailable or misleading mortgage terms and not engaging in bait-and-switch or other prohibited advertising practices.
Why the Other Options Are Wrong
Option A: Skip the North Carolina requirement because the company already follows general SAFE Act procedures.
Skip the North Carolina requirement because the company already follows general SAFE Act procedures. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option B: Treat licensing and NMLS authority as optional because the company has a general North Carolina compliance policy.
Treat licensing and NMLS authority as optional because the company has a general North Carolina compliance policy. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Postpone the North Carolina licensing and NMLS authority issue until the next annual review.
Postpone the North Carolina licensing and NMLS authority issue until the next annual review. 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 advertising must reflect available, nonmisleading terms.
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?
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