For a company procedure in Michigan, a compliance counsel validates pre-licensure education. Which rule should be applied?
Correct Answer
B) Michigan PE requires 20 NMLS-approved hours with required federal, ethics, nontraditional-mortgage, and state content where applicable.
Michigan prelicensing education follows SAFE Act content: at least 20 hours including 3 hours federal law, 3 hours ethics with fraud, consumer protection, and fair lending, 2 hours nontraditional mortgage lending, and Michigan-specific education as listed by NMLS.
Why This Is the Correct Answer
Michigan PE requires 20 NMLS-approved hours with required federal, ethics, nontraditional-mortgage, and state content where applicable. This is correct because Michigan prelicensing education follows SAFE Act content: at least 20 hours including 3 hours federal law, 3 hours ethics with fraud, consumer protection, and fair lending, 2 hours nontraditional mortgage lending, and Michigan-specific education as listed by NMLS.
Why the Other Options Are Wrong
Option A: Answer from the topic label instead of the rule text.
Answer from the topic label instead of the rule text. is not correct because the state rule supports: Michigan PE requires 20 NMLS-approved hours with required federal, ethics, nontraditional-mortgage, and state content where applicable.
Option C: Let the file proceed because the company has written procedures.
Let the file proceed because the company has written procedures. is not correct because the state rule supports: Michigan PE requires 20 NMLS-approved hours with required federal, ethics, nontraditional-mortgage, and state content where applicable.
Option D: Substitute a training example for the state's required condition.
Substitute a training example for the state's required condition. is not correct because the state rule supports: Michigan PE requires 20 NMLS-approved hours with required federal, ethics, nontraditional-mortgage, and state content where applicable.
Memory Technique
Michigan: pre-licensure education -> use the exact state rule in the explanation.
Exam Tip
Match the Michigan fact pattern to the specific pre-licensure education rule; do not answer from a generic state or federal assumption.
Common Mistakes to Avoid
- -Treating a Michigan pre-licensure education 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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