When a renewal checklist is reviewed in Georgia, a training manager must decide application and licensing qualifications. Which answer is accurate?
Correct Answer
C) Georgia requires application-fee refundability and service disclosures before accepting the fee.
Georgia Rule 80-11-1 requires mortgage lenders or brokers to disclose, before accepting a fee, refundability, refund terms, the services covered by an application fee, and that the lender or broker cannot guarantee loan approval or program acceptance.
Why This Is the Correct Answer
Georgia requires application-fee refundability and service disclosures before accepting the fee. This is correct because Georgia Rule 80-11-1 requires mortgage lenders or brokers to disclose, before accepting a fee, refundability, refund terms, the services covered by an application fee, and that the lender or broker cannot guarantee loan approval or program acceptance.
Why the Other Options Are Wrong
Option A: Skip the state-specific step because a renewal checklist has a national checklist.
Skip the state-specific step because a renewal checklist has a national checklist. is not correct because the state rule supports: Georgia requires application-fee refundability and service disclosures before accepting the fee.
Option B: Treat the answer as business judgment rather than compliance.
Treat the answer as business judgment rather than compliance. is not correct because the state rule supports: Georgia requires application-fee refundability and service disclosures before accepting the fee.
Option D: Allow the activity if the borrower has signed disclosures.
Allow the activity if the borrower has signed disclosures. is not correct because the state rule supports: Georgia requires application-fee refundability and service disclosures before accepting the fee.
Memory Technique
Georgia: application and licensing qualifications -> use the exact state rule in the explanation.
Exam Tip
Match the Georgia fact pattern to the specific application and licensing qualifications rule; do not answer from a generic state or federal assumption.
Common Mistakes to Avoid
- -Treating a Georgia application and licensing qualifications rule as a generic national mortgage rule
- -Choosing a familiar licensing answer that is not supported by the official authority
- -Ignoring the exact condition stated in the explanation
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