A mortgage company asks a loan file reviewer to validate a Tennessee advertising approval involving advertising and consumer-protection controls. Which statement is reliable?
Correct Answer
C) 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 A: Use another jurisdiction's approval as a substitute for the Tennessee requirement.
Use another jurisdiction's approval as a substitute for the Tennessee requirement. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option B: Treat the requirement as waived because the borrower or employer agrees.
Treat the requirement as waived because the borrower or employer agrees. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Assume another state's approval automatically satisfies the Tennessee requirement.
Assume another state's approval automatically satisfies the Tennessee requirement. 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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