Before approving the advertising approval, a New York compliance manager checks licensing and NMLS authority. Which conclusion is best supported?
Correct Answer
A) New York Article 12-E authorizes rules, regulations, and examinations related to MLO licensing and compliance.
New York Article 12-E authorizes rules, regulations, and examinations related to MLO licensing and compliance.
Why This Is the Correct Answer
New York Article 12-E authorizes rules, regulations, and examinations related to MLO licensing and compliance.
Why the Other Options Are Wrong
Option B: Treat licensing and NMLS authority as optional because the company has a general New York compliance policy.
Treat licensing and NMLS authority as optional because the company has a general New York compliance policy. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Postpone the New York licensing and NMLS authority issue until the next annual review.
Postpone the New York licensing and NMLS authority issue until the next annual review. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Use only the federal baseline and ignore the separate New York state requirement.
Use only the federal baseline and ignore the separate New York state requirement. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
NY -> ny-dfs-exams-investigations-discipline-penalties-surety
Exam Tip
Enforcement questions test DFS suspension/revocation, restitution, exams, Article 12-D discipline, surety bonds under 599-k and 3 NYCRR 420.15, unlicensed activity, confidentiality, and information sharing.
Common Mistakes to Avoid
- -Using generic federal mortgage facts when New York DFS or Banking Law rules are being tested
- -Confusing Article 12-D company authority with Article 12-E individual MLO authority
- -Treating New York high-cost, subprime, reverse mortgage, MCR, unique identifier, or surety bond rules as optional
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