Under Texas consumer protection provisions, a lender who steers a borrower into a higher-cost loan when the borrower qualifies for a lower-cost product may be engaging in which prohibited practice?
Correct Answer
B) Predatory loan steering in violation of anti-steering provisions
Steering a borrower into a higher-cost loan when they qualify for a lower-cost product is predatory loan steering, prohibited under both Texas anti-predatory provisions and federal law (Regulation Z anti-steering rules).
Why This Is the Correct Answer
Steering a borrower into a higher-cost loan when they qualify for a lower-cost product is predatory loan steering, prohibited under both Texas anti-predatory provisions and federal law (Regulation Z anti-steering rules).
More UST Questions
What is the minimum net worth requirement for a mortgage lender licensee in Pennsylvania?
A Georgia MLO company fails to pay its annual license renewal fee by the December 31st deadline. The company's license status would be:
A loan originator completes 15 hours of pre-licensure education from an approved provider, then realizes 3 hours were duplicated from a previous course taken 6 months ago. How many additional hours must be completed to meet the requirement?
A mortgage loan originator in New Jersey must provide which specific state-required disclosure to borrowers in addition to federal requirements?
Under Texas law, which of the following is TRUE regarding deficiency judgments after a residential mortgage foreclosure?
An MLO licensed in California fails to complete their required continuing education by December 31. What is the consequence?
An MLO transitions from a federal savings bank to a state-licensed mortgage broker on January 15th and submits a complete state license application on February 10th. If no decision is made by the state, when does temporary authority expire?
A mortgage banker operating in New Jersey originates $75 million in residential mortgage loans annually. What is the minimum net worth requirement this entity must maintain?
Under Florida and federal law, a borrower has the right to rescind (cancel) a refinance transaction on their primary residence within:
Florida requires certain professionals to report suspected mortgage fraud. Which of the following is required to report suspected fraud to the appropriate authorities?
People Also Study
Federal Mortgage-Related Laws
24% of exam
General Mortgage Knowledge
20% of exam
Mortgage Loan Origination Activities
27% of exam
Ethics, Fraud & Consumer Protection
18% of exam
Related Study Resources
Previous Question
In the City of Chicago, additional mortgage lending regulations may include which of the following?
Next Question
A mortgage brokerage company's net worth calculation includes $30,000 in cash, $15,000 in accounts receivable, $50,000 in office equipment, and $25,000 in liabilities. For regulatory purposes, what is the company's allowable net worth?