A training manager compares company policy with Tennessee requirements during a new-license application. Which statement fits advertising and consumer-protection controls?
Correct Answer
A) Tennessee Chapter 0180-17 requires accounting for fees paid to third persons in connection with mortgage lending, loan servicing, and loan brokering.
Tennessee Chapter 0180-17 requires accounting for fees paid to third persons in connection with mortgage lending, loan servicing, and loan brokering.
Why This Is the Correct Answer
Tennessee Chapter 0180-17 requires accounting for fees paid to third persons in connection with mortgage lending, loan servicing, and loan brokering.
Why the Other Options Are Wrong
Option B: Delay the Tennessee requirement until after the loan closes or the renewal period ends.
Delay the Tennessee requirement until after the loan closes or the renewal period ends. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Treat consumer consent as a cure for a prohibited or missing compliance step.
Treat consumer consent as a cure for a prohibited or missing compliance step. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Treat the timing or filing requirement as optional if the transaction appears low risk.
Treat the timing or filing requirement as optional if the transaction appears low risk. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
TN -> tn-conduct-fees-lock-ins-servicing-advertising-prohibited-practices
Exam Tip
Tennessee conduct questions test accounting for third-party fees, mortgage transfer notices, lock-in agreements, lock-in and commitment fee refunds, brokerage or finder fees, and Chapter 13 prohibitions.
Common Mistakes to Avoid
- -Using generic federal mortgage facts when Tennessee state-specific rules are being tested
- -Confusing Tennessee individual MLO licensing with company, branch, sponsor, bond, or record requirements
- -Treating Tennessee state-law conduct, advertising, reporting, servicing, or enforcement requirements as optional
More UST Questions
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