Which statement is most accurate about civil penalties and disgorgement under North Carolina MLO law or NCCOB guidance?
Correct Answer
C) NC disciplinary authority includes civil penalties up to $25,000 per violation, disgorgement, prohibiting unfair or deceptive practices, and surrender consequences with Commissioner approval.
NC disciplinary authority includes civil penalties up to $25,000 per violation, disgorgement, prohibiting unfair or deceptive practices, and surrender consequences with Commissioner approval. North Carolina disciplinary authority includes civil penalties up to $25,000 per violation, disgorgement, prohibiting unfair or deceptive practices, and surrender consequences when approved by the Commissioner.
Why This Is the Correct Answer
NC disciplinary authority includes civil penalties up to $25,000 per violation, disgorgement, prohibiting unfair or deceptive practices, and surrender consequences with Commissioner approval. North Carolina disciplinary authority includes civil penalties up to $25,000 per violation, disgorgement, prohibiting unfair or deceptive practices, and surrender consequences when approved by the Commissioner.
Why the Other Options Are Wrong
Option A: Continue the activity and document the issue only if a complaint is later filed.
Continue the activity and document the issue only if a complaint is later filed. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option B: 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 D: Let production staff decide whether examination, supervision, and enforcement matters for the file.
Let production staff decide whether examination, supervision, and enforcement matters for the file. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
NC -> nc-examination-confidentiality-and-enforcement
Exam Tip
Do not confuse the $25,000 civil penalty cap with application fees.
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
In a pricing desk question, an audit analyst sees facts tied to Prohibited Misrepresentation. What should the file reflect?
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Which statement correctly distinguishes a license suspension from a license revocation?
A state regulator has issued an order suspending an MLO's authority effective immediately. The MLO has filed an appeal, but no stay has been granted. What should the MLO do?
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An MLO's license status in NMLS changes to suspended, with no stay or reinstatement shown. What is the immediate operational effect?
Which fact most directly supports disciplinary action against an MLO rather than merely a request for additional application information?
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