During a North Carolina renewal checklist, a renewal specialist must resolve a question about pre-licensure education. Which statement should control?
Correct Answer
A) North Carolina recognizes temporary authority under 12 U.S.C. 5117, and NCCOB guidance ties qualifying temporary-authority applicants to a 120-day PE completion window.
North Carolina recognizes temporary authority under 12 U.S.C. 5117, and NCCOB guidance ties qualifying temporary-authority applicants to a 120-day PE completion window. North Carolina recognizes temporary authority for certain covered individuals under 12 U.S.C. 5117, and NCCOB guidance ties temporary-authority applicants to a 120-day PE completion window.
Why This Is the Correct Answer
North Carolina recognizes temporary authority under 12 U.S.C. 5117, and NCCOB guidance ties qualifying temporary-authority applicants to a 120-day PE completion window. North Carolina recognizes temporary authority for certain covered individuals under 12 U.S.C. 5117, and NCCOB guidance ties temporary-authority applicants to a 120-day PE completion window.
Why the Other Options Are Wrong
Option B: Delay the North Carolina requirement until after the loan closes or the renewal period ends.
Delay the North Carolina requirement until after the loan closes or the renewal period ends. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: 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 D: 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.
Memory Technique
NC -> nc-license-requirement-nmls-and-sponsorship
Exam Tip
Temporary authority is conditional; it is not a permanent waiver.
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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