A licensing coordinator is updating New York procedures for consumer complaint response and flags advertising and consumer-protection controls. Which answer is accurate?
Correct Answer
D) New York DFS explains that reverse mortgages are generally available to homeowners 60 years of age or older and allow conversion of home equity into cash while retaining ownership.
New York DFS explains that reverse mortgages are generally available to homeowners 60 years of age or older and allow conversion of home equity into cash while retaining ownership.
Why This Is the Correct Answer
New York DFS explains that reverse mortgages are generally available to homeowners 60 years of age or older and allow conversion of home equity into cash while retaining ownership.
Why the Other Options Are Wrong
Option A: Assume the New York requirement does not apply to this MLO sponsorship update.
Assume the New York requirement does not apply to this MLO sponsorship update. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option B: 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 C: 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.
Memory Technique
NY -> ny-high-cost-subprime-reverse-mortgage-consumer-protections
Exam Tip
New York consumer-protection items often test Banking Law 6-l high-cost loans, 6-m subprime loans, reverse mortgage authority, 60+ reverse mortgage eligibility, 12-month occupancy issues, authorized designee notices, and co-op versus condo collateral.
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
In a pricing desk question, an audit analyst sees facts tied to Prohibited Misrepresentation. What should the file reflect?
An applicant previously had an MLO license revoked by a state regulator. Under the SAFE Act minimum standards for a new state-licensed MLO license, which statement is correct?
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?
An MLO license application asks whether the applicant has been the subject of a regulatory order. The applicant has a recent consent order that falls within the question. What is the proper response?
Why does NMLS maintain licensing and enforcement information that participating regulators can access?
A regulator issues a final license suspension without giving the MLO notice of the alleged violation or any opportunity to respond, even though applicable law requires both. What issue is presented?
A regulator finds that an MLO charged consumers prohibited fees. Which set of actions is consistent with the enforcement tools contemplated by Regulation H?
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?
People Also Study
Federal Mortgage-Related Laws
24% of exam
General Mortgage Knowledge
20% of exam
Mortgage Loan Origination Activities
27% of exam
Ethics, Fraud & Consumer Protection
18% of exam