A branch supervisor is updating New York procedures for regulator exam preparation and flags licensing and NMLS authority. Which answer is accurate?
Correct Answer
C) New York mortgage brokers must clearly disclose material information to borrowers not later than 3 days after receiving the loan application as specified by Banking Law 590-b.
New York mortgage brokers must clearly disclose material information to borrowers not later than 3 days after receiving the loan application as specified by Banking Law 590-b.
Why This Is the Correct Answer
New York mortgage brokers must clearly disclose material information to borrowers not later than 3 days after receiving the loan application as specified by Banking Law 590-b.
Why the Other Options Are Wrong
Option A: Use an informal manager exception without updating the license, file, or required record.
Use an informal manager exception without updating the license, file, or required record. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option B: Use a verbal explanation instead of the required license status, disclosure, record, or filing.
Use a verbal explanation instead of the required license status, disclosure, record, or filing. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Use a record-retention audit exception instead of satisfying the rule before activity continues.
Use a record-retention audit exception instead of satisfying the rule before activity continues. 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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