A practice question asks about initial MLO fees. Which answer best matches the official North Carolina rule?
Correct Answer
A) NCCOB lists a $125 initial MLO application fee plus NMLS processing, credit report, FBI background, and state background costs.
NCCOB lists a $125 initial MLO application fee plus NMLS processing, credit report, FBI background, and state background costs. NCCOB lists a $125 initial MLO application fee, and additional costs for NMLS processing, credit report, FBI criminal background check, and state criminal background check.
Why This Is the Correct Answer
NCCOB lists a $125 initial MLO application fee plus NMLS processing, credit report, FBI background, and state background costs. NCCOB lists a $125 initial MLO application fee, and additional costs for NMLS processing, credit report, FBI criminal background check, and state criminal background check.
Why the Other Options Are Wrong
Option B: Handle licensing and NMLS authority with an informal note rather than the required license, disclosure, filing, or record.
Handle licensing and NMLS authority with an informal note rather than the required license, disclosure, filing, or record. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Use another jurisdiction's approval as a substitute for the North Carolina requirement.
Use another jurisdiction's approval as a substitute for the North Carolina requirement. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Treat the requirement as waived because the borrower or employer agrees.
Treat the requirement as waived because the borrower or employer agrees. 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
Separate the NC application fee from pass-through NMLS and background costs.
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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