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An audit analyst documents a New Mexico MLO sponsorship update and needs one rule for licensing and NMLS authority. Which statement belongs in the file?

Correct Answer

D) New Mexico mortgage licensing includes surety bond, recovery fund, net worth, or financial responsibility coverage as required by state law or regulator guidance.

New Mexico mortgage licensing includes surety bond, recovery fund, net worth, or financial responsibility coverage as required by state law or regulator guidance.

Answer Options
A
Let production staff decide whether sponsorship and employment status matters for the file.
B
Skip documentation because the remote-work procedure appears routine.
C
Rely on prior mortgage experience instead of the stated licensing or compliance requirement.
D
New Mexico mortgage licensing includes surety bond, recovery fund, net worth, or financial responsibility coverage as required by state law or regulator guidance.

Why This Is the Correct Answer

New Mexico mortgage licensing includes surety bond, recovery fund, net worth, or financial responsibility coverage as required by state law or regulator guidance.

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