A compliance manager is updating North Carolina procedures for state-law refresher and flags continuing education and renewal. Which answer is accurate?
Correct Answer
B) NC requires a qualified NMLS-approved written test covering ethics, federal law, state law, fraud, consumer protection, nontraditional mortgage products, and fair lending, with at least 75 percent to pass.
NC requires a qualified NMLS-approved written test covering ethics, federal law, state law, fraud, consumer protection, nontraditional mortgage products, and fair lending, with at least 75 percent to pass. North Carolina testing requires a qualified written test approved through NMLS that measures ethics, federal law, state law, fraud, consumer protection, nontraditional mortgage products, and fair lending, with a passing score of at least 75 percent.
Why This Is the Correct Answer
NC requires a qualified NMLS-approved written test covering ethics, federal law, state law, fraud, consumer protection, nontraditional mortgage products, and fair lending, with at least 75 percent to pass. North Carolina testing requires a qualified written test approved through NMLS that measures ethics, federal law, state law, fraud, consumer protection, nontraditional mortgage products, and fair lending, with a passing score of at least 75 percent.
Why the Other Options Are Wrong
Option A: 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 C: 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 D: Treat continuing education and renewal as optional because the company has a general North Carolina compliance policy.
Treat continuing education and renewal 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.
Memory Technique
NC -> nc-education-testing-and-renewal
Exam Tip
NC uses the 75 percent passing threshold.
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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