A servicer asks whether Chapter 45 obligations can be ignored in NC servicing. What is the best conclusion under North Carolina MLO law or NCCOB guidance?
Correct Answer
B) 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: Assume another state's approval automatically satisfies the North Carolina requirement.
Assume another state's approval automatically satisfies the North Carolina requirement. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Apply the North Carolina rule only to company licenses and never to individual MLO activity.
Apply the North Carolina rule only to company licenses and never to individual MLO activity. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Handle advertising and consumer-protection controls with an informal note rather than the required license, disclosure, filing, or record.
Handle advertising and consumer-protection controls with an informal note rather than the required license, disclosure, filing, or record. 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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