A loan file reviewer compares company policy with New York requirements during a records and reporting review. Which statement fits records and reporting?
Correct Answer
B) 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
The correct response is "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." because 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: Use a verbal explanation instead of the required disclosure, record, or filing.
Use a verbal explanation instead of the required disclosure, record, or filing. is not correct because it does not apply the rule tested by this file scenario.
Option C: Keep only informal notes instead of the required state records or notices.
Keep only informal notes instead of the required state records or notices. is not correct because it does not apply the rule tested by this file scenario.
Option D: Apply a generic federal shortcut and ignore the state-specific condition.
Apply a generic federal shortcut and ignore the state-specific condition. is not correct because it does not apply the rule tested by this file scenario.
Memory Technique
New York records and reporting: identify the rule being tested, then choose the action that documents or applies that rule before the file moves forward.
Exam Tip
Match the file facts to New York records and reporting; do not choose an exception or shortcut that skips the required rule.
Common Mistakes to Avoid
- -Choosing an internal exception instead of the governing rule
- -Treating preliminary or informal facts as a substitute for required documentation
- -Answering from a familiar but unrelated mortgage topic
More UST Questions
In a pricing desk question, an audit analyst sees facts tied to Prohibited Misrepresentation. What should the file reflect?
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