A North Carolina file is paused during a loan-originator transfer because of continuing education and renewal. Which statement clears the compliance question?
Correct Answer
A) NC CE courses are reviewed and approved by NMLS, the same approved course cannot be used in the same or successive years, and instructor credit is 2 hours for every 1 hour taught.
NC CE courses are reviewed and approved by NMLS, the same approved course cannot be used in the same or successive years, and instructor credit is 2 hours for every 1 hour taught. North Carolina CE courses are reviewed and approved by NMLS; a licensed MLO may not take the same approved course in the same or successive years, and instructor credit is 2 hours credit for every 1 hour taught.
Why This Is the Correct Answer
NC CE courses are reviewed and approved by NMLS, the same approved course cannot be used in the same or successive years, and instructor credit is 2 hours for every 1 hour taught. North Carolina CE courses are reviewed and approved by NMLS; a licensed MLO may not take the same approved course in the same or successive years, and instructor credit is 2 hours credit for every 1 hour taught.
Why the Other Options Are Wrong
Option B: Use a verbal explanation instead of the required license status, disclosure, record, or filing.
Use a verbal explanation instead of the required license status, disclosure, record, or filing. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Use a renewal checklist exception instead of satisfying the rule before activity continues.
Use a renewal checklist exception instead of satisfying the rule before activity continues. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Close or renew first, then decide whether the renewal checklist needs a compliance correction.
Close or renew first, then decide whether the renewal checklist needs a compliance correction. 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 blocks same-course repeats in same or successive years.
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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