A loan file reviewer handling a North Carolina state-law refresher needs the compliant answer for licensing and NMLS authority. What should the reviewer choose?
Correct Answer
C) NCCOB guidance says a location used to originate loans for North Carolina consumers generally must be registered as a branch; locations dedicated to processing, underwriting, or servicing activity do not require branch registration.
NCCOB guidance says a location used to originate loans for North Carolina consumers generally must be registered as a branch, but locations used only for processing, underwriting, or servicing activity do not require branch registration.
Why This Is the Correct Answer
NCCOB guidance says a location used to originate loans for North Carolina consumers generally must be registered as a branch, but locations used only for processing, underwriting, or servicing activity do not require branch registration.
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-identifier-remote-branch-and-records
Exam Tip
Origination activity is the branch-registration trigger.
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
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