A branch supervisor is updating New York procedures for record-retention audit and flags licensing and NMLS authority. Which answer is accurate?
Correct Answer
C) New York DFS enforcement may include orders, conditions, restitution, license denial, suspension, revocation, refusal to renew, and other remedies depending on the statute and violation.
New York DFS enforcement may include orders, conditions, restitution, license denial, suspension, revocation, refusal to renew, and other remedies depending on the statute and violation.
Why This Is the Correct Answer
New York DFS enforcement may include orders, conditions, restitution, license denial, suspension, revocation, refusal to renew, and other remedies depending on the statute and violation.
Why the Other Options Are Wrong
Option A: Treat licensing and NMLS authority as satisfied by borrower consent alone.
Treat licensing and NMLS authority as satisfied by borrower consent alone. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option B: Delay the New York requirement until after the loan closes or the renewal period ends.
Delay the New York requirement until after the loan closes or the renewal period ends. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Treat consumer consent as a cure for a prohibited or missing compliance step.
Treat consumer consent as a cure for a prohibited or missing compliance step. 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
More UST Questions
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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?
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