A New York file is paused during a loan-originator transfer because of licensing and NMLS authority. Which statement clears the compliance question?
Correct Answer
D) New York Banking Law Article 12-D governs licensed mortgage bankers, registered mortgage brokers, mortgage loan servicers, exempt organizations, and related mortgage business activity.
New York Banking Law Article 12-D governs licensed mortgage bankers, registered mortgage brokers, mortgage loan servicers, exempt organizations, and related mortgage business activity.
Why This Is the Correct Answer
New York Banking Law Article 12-D governs licensed mortgage bankers, registered mortgage brokers, mortgage loan servicers, exempt organizations, and related mortgage business activity.
Why the Other Options Are Wrong
Option A: Skip documentation because the renewal checklist appears routine.
Skip documentation because the renewal checklist appears routine. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option B: Rely on prior mortgage experience instead of the stated licensing or compliance requirement.
Rely on prior mortgage experience instead of the stated licensing or compliance requirement. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Continue the activity and document the issue only if a complaint is later filed.
Continue the activity and document the issue only if a complaint is later filed. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
NY -> ny-article-12d-mortgage-bankers-brokers-servicers-reports
Exam Tip
Article 12-D questions often test banker license versus broker registration, mortgage-loan definitions including co-op collateral, branch/control changes, servicer registration, guidebook procedures, and record/report duties.
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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