Which statement is most accurate about Chapter 45 servicing obligations under North Carolina MLO law or NCCOB guidance?
Correct Answer
D) NC requires compliance with RESPA servicing duties and mortgage servicer obligations under Article 10 of Chapter 45.
NC requires compliance with RESPA servicing duties and mortgage servicer obligations under Article 10 of Chapter 45. North Carolina prohibited-acts provisions require compliance with RESPA servicing transfer, escrow-account administration, borrower inquiry response requirements, and applicable Chapter 45 servicer obligations.
Why This Is the Correct Answer
NC requires compliance with RESPA servicing duties and mortgage servicer obligations under Article 10 of Chapter 45. North Carolina prohibited-acts provisions require compliance with RESPA servicing transfer, escrow-account administration, borrower inquiry response requirements, and applicable Chapter 45 servicer obligations.
Why the Other Options Are Wrong
Option A: Let the MLO originate while waiting for the North Carolina status, sponsorship, or renewal issue to be corrected.
Let the MLO originate while waiting for the North Carolina status, sponsorship, or renewal issue to be corrected. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option B: Let production staff decide whether advertising and consumer-protection controls matters for the file.
Let production staff decide whether advertising and consumer-protection controls matters for the file. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Skip documentation because the remote-work procedure appears routine.
Skip documentation because the remote-work procedure appears routine. 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 servicing compliance can involve both RESPA and Chapter 45.
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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