A compliance manager is updating Wisconsin procedures for disciplinary-risk review and flags licensing and NMLS authority. Which answer is accurate?
Correct Answer
B) Wisconsin DFI says a Mortgage Broker License is required for compensation or expected compensation when a person assists or holds out as able to assist another in obtaining.
Wisconsin DFI says a Mortgage Broker License is required for compensation or expected compensation when a person assists or holds out as able to assist another in obtaining or applying for a residential mortgage loan, or engages in table funding without underwriting or closing the loan.
Why This Is the Correct Answer
Wisconsin DFI says a Mortgage Broker License is required for compensation or expected compensation when a person assists or holds out as able to assist another in obtaining. This is correct because Wisconsin DFI says a Mortgage Broker License is required for compensation or expected compensation when a person assists or holds out as able to assist another in obtaining or applying for a residential mortgage loan, or engages in table funding without underwriting or closing the loan.
Why the Other Options Are Wrong
Option A: Proceed before the required Wisconsin license, sponsorship, disclosure, record, or approval is in place.
Proceed before the required Wisconsin license, sponsorship, disclosure, record, or approval is in place. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: 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 D: 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.
Memory Technique
WI -> licensing and NMLS authority
Exam Tip
Identify the Wisconsin state requirement first, then choose the answer that preserves licensing, disclosure, record, supervision, or enforcement compliance.
Common Mistakes to Avoid
- -Using a generic national rule when the Wisconsin state requirement controls
- -Treating Wisconsin licensing, reporting, advertising, records, or enforcement duties as optional
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