An audit analyst handling a New Jersey company policy update needs the compliant answer for sponsorship and employment status. What should the reviewer choose?
Correct Answer
B) An employee loan processor or underwriter performing clerical or support duties under supervision is not required to hold a New Jersey MLO license solely for that clerical or support role.
An employee loan processor or underwriter performing clerical or support duties under supervision is not required to hold a New Jersey MLO license solely for that clerical or support role.
Why This Is the Correct Answer
An employee loan processor or underwriter performing clerical or support duties under supervision is not required to hold a New Jersey MLO license solely for that clerical or support role.
Why the Other Options Are Wrong
Option A: Use another jurisdiction's approval as a substitute for the New Jersey requirement.
Use another jurisdiction's approval as a substitute for the New Jersey requirement. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Treat the requirement as waived because the borrower or employer agrees.
Treat the requirement as waived because the borrower or employer agrees. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Assume another state's approval automatically satisfies the New Jersey requirement.
Assume another state's approval automatically satisfies the New Jersey requirement. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
NJ -> nj-rmla-definitions-exemptions-MLO-employment-qi
Exam Tip
RMLA definition questions turn on compensated application-taking or negotiation, New Jersey residential collateral, registered MLO treatment, employee clerical support, attorney limits, family and own-residence exemptions, and qualified-individual status.
Common Mistakes to Avoid
- -Using generic federal mortgage facts when New Jersey DOBI, RMLA, HOSA, or NJAC rules are being tested
- -Confusing company licensing, qualified-individual licensing, and individual MLO licensing
- -Treating New Jersey bond, net worth, HOSA counseling, annual report, or enforcement rules as optional
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