a Michigan compliance file raises an application and licensing qualifications question involving defines a mortgage loan originator as an individual who, for compensation or gain or in expectation of compensation. Which statement is supported by the state rule?
Correct Answer
A) Michigan licensing depends on the required application, background, credit, and financial-responsibility findings.
Michigan defines a mortgage loan originator as an individual who, for compensation or gain or in expectation of compensation or gain, takes a residential mortgage loan application or offers or negotiates residential mortgage loan terms.
Why This Is the Correct Answer
The correct response is "Michigan licensing depends on the required application, background, credit, and financial-responsibility findings." because Michigan defines a mortgage loan originator as an individual who, for compensation or gain or in expectation of compensation or gain, takes a residential mortgage loan application or offers or negotiates residential mortgage loan terms.
Why the Other Options Are Wrong
Option B: Rely on prior mortgage experience instead of the stated state or NMLS requirement.
Rely on prior mortgage experience instead of the stated state or NMLS requirement. is not correct because it does not apply the rule tested by this file scenario.
Option C: Treat the file as complete without the required licensing documentation.
Treat the file as complete without the required licensing documentation. is not correct because it does not apply the rule tested by this file scenario.
Option D: Delay the correction until after approval, closing, or a later complaint.
Delay the correction until after approval, closing, or a later complaint. is not correct because it does not apply the rule tested by this file scenario.
Memory Technique
Michigan application and licensing qualifications: 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 Michigan application and licensing qualifications; 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
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