Which statement is most accurate about revocation and felony restrictions under North Carolina MLO law or NCCOB guidance?
Correct Answer
C) NC issuance standards include no unvacated MLO revocation, a 7-year felony restriction, a lifetime restriction for fraud, dishonesty, breach of trust, or money-laundering felonies, and financial responsibility.
NC issuance standards include no unvacated MLO revocation, a 7-year felony restriction, a lifetime restriction for fraud, dishonesty, breach of trust, or money-laundering felonies, and financial responsibility. North Carolina MLO license issuance standards include no unvacated MLO license revocation, 7-year felony restrictions, lifetime fraud/dishonesty/breach-of-trust/money-laundering felony restriction, and financial responsibility.
Why This Is the Correct Answer
NC issuance standards include no unvacated MLO revocation, a 7-year felony restriction, a lifetime restriction for fraud, dishonesty, breach of trust, or money-laundering felonies, and financial responsibility. North Carolina MLO license issuance standards include no unvacated MLO license revocation, 7-year felony restrictions, lifetime fraud/dishonesty/breach-of-trust/money-laundering felony restriction, and financial responsibility.
Why the Other Options Are Wrong
Option A: Delay the North Carolina requirement until after the loan closes or the renewal period ends.
Delay the North Carolina requirement until after the loan closes or the renewal period ends. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option B: Treat consumer consent as a cure for a prohibited or missing compliance step.
Treat consumer consent as a cure for a prohibited or missing compliance step. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Treat the timing or filing requirement as optional if the transaction appears low risk.
Treat the timing or filing requirement as optional if the transaction appears low risk. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
NC -> nc-application-eligibility-fees-and-background
Exam Tip
NC uses both time-limited and lifetime criminal-history bars.
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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