Which statement is most accurate about RESPA and escrow servicing compliance under North Carolina MLO law or NCCOB guidance?
Correct Answer
A) NC prohibited-acts provisions require compliance with RESPA servicing transfer, escrow-account administration, borrower inquiry response requirements, and applicable federal servicing framework.
NC prohibited-acts provisions require compliance with RESPA servicing transfer, escrow-account administration, borrower inquiry response requirements, and applicable federal servicing framework. North Carolina imposes servicing-transfer and escrow-related duties, including compliance with RESPA and the federal Real Estate Settlement Procedures Act servicing framework.
Why This Is the Correct Answer
NC prohibited-acts provisions require compliance with RESPA servicing transfer, escrow-account administration, borrower inquiry response requirements, and applicable federal servicing framework. North Carolina imposes servicing-transfer and escrow-related duties, including compliance with RESPA and the federal Real Estate Settlement Procedures Act servicing framework.
Why the Other Options Are Wrong
Option B: 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 C: Treat advertising and consumer-protection controls as optional because the company has a general North Carolina compliance policy.
Treat advertising and consumer-protection controls 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.
Option D: Postpone the North Carolina advertising and consumer-protection controls issue until the next annual review.
Postpone the North Carolina advertising and consumer-protection controls issue until the next annual review. 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
NC folds federal servicing duties into state prohibited-act compliance.
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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