A practice question asks about reinstatement limit. Which answer best matches the official North Carolina rule?
Correct Answer
B) NC prohibits refusing to reinstate a delinquent loan after timely sufficient payment, but this reinstatement right is available no more than twice in any 24-month period.
NC prohibits refusing to reinstate a delinquent loan after timely sufficient payment, but this reinstatement right is available no more than twice in any 24-month period. North Carolina prohibits refusing to reinstate a delinquent loan after timely sufficient payment, but the reinstatement right is available no more than twice in any 24-month period.
Why This Is the Correct Answer
NC prohibits refusing to reinstate a delinquent loan after timely sufficient payment, but this reinstatement right is available no more than twice in any 24-month period. North Carolina prohibits refusing to reinstate a delinquent loan after timely sufficient payment, but the reinstatement right is available no more than twice in any 24-month period.
Why the Other Options Are Wrong
Option A: 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 C: 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.
Option D: Assume the North Carolina requirement does not apply to this advertising approval.
Assume the North Carolina requirement does not apply to this advertising approval. 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
The NC reinstatement rule has a twice-in-24-months limit.
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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