Which statement is most accurate about high-cost APOR transition guidance under North Carolina MLO law or NCCOB guidance?
Correct Answer
C) NCCOB FAQ gives official guidance allowing APOR under 12 C.F.R. 1026.35 as a reasonable replacement reference during the North Carolina high-cost home loan transition.
NCCOB FAQ gives official guidance allowing APOR under 12 C.F.R. 1026.35 as a reasonable replacement reference during the North Carolina high-cost home loan transition. NCCOB FAQ provides official guidance on North Carolina high-cost home loan/APOR calculation during transition to a new 12 CFR 1026.35(a) reference.
Why This Is the Correct Answer
NCCOB FAQ gives official guidance allowing APOR under 12 C.F.R. 1026.35 as a reasonable replacement reference during the North Carolina high-cost home loan transition. NCCOB FAQ provides official guidance on North Carolina high-cost home loan/APOR calculation during transition to a new 12 CFR 1026.35(a) reference.
Why the Other Options Are Wrong
Option A: Use only the federal baseline and ignore the separate North Carolina state requirement.
Use only the federal baseline and ignore the separate North Carolina state requirement. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option B: Apply the rule only after the North Carolina regulator has already opened an examination.
Apply the rule only after the North Carolina regulator has already opened an examination. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: 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.
Memory Technique
NC -> nc-servicing-prohibited-acts-advertising-and-high-cost
Exam Tip
Use official NCCOB APOR guidance for this transition issue.
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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