A licensing coordinator compares company policy with New York requirements during a mortgage operations checklist. Which statement fits licensing and NMLS authority?
Correct Answer
D) New York mortgage bankers generally need a license to engage in the business of mortgage banking, while mortgage brokers generally register with DFS rather than holding the same banker license.
New York mortgage bankers generally need a license to engage in the business of mortgage banking, while mortgage brokers generally register with DFS rather than holding the same banker license.
Why This Is the Correct Answer
New York mortgage bankers generally need a license to engage in the business of mortgage banking, while mortgage brokers generally register with DFS rather than holding the same banker license.
Why the Other Options Are Wrong
Option A: Assume the New York requirement does not apply to this record-retention audit.
Assume the New York requirement does not apply to this record-retention audit. 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-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
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