A Texas quality-control reviewer is reviewing a new-license application tied to licensing and NMLS authority. Which rule should be applied?
Correct Answer
D) Texas unlicensed mortgage activity may carry administrative, civil, and criminal consequences, including heightened consequences for repeated violations and borrower recovery remedies where the statute provides them.
Texas unlicensed mortgage activity may carry administrative, civil, and criminal consequences, including heightened consequences for repeated violations and borrower recovery remedies where the statute provides them.
Why This Is the Correct Answer
Texas unlicensed mortgage activity may carry administrative, civil, and criminal consequences, including heightened consequences for repeated violations and borrower recovery remedies where the statute provides them.
Why the Other Options Are Wrong
Option A: 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 B: 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.
Option C: Assume the Texas requirement does not apply to this record-retention audit.
Assume the Texas requirement does not apply to this record-retention audit. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
TX -> tx-enforcement-exams-discipline-recovery-funds
Exam Tip
Texas enforcement questions often test regulator examination and subpoena power, denial/suspension/revocation, cease-and-desist orders, administrative penalties, unlicensed activity, recovery fund consequences, and NMLS/regulator coordination.
Common Mistakes to Avoid
- -Using a generic national answer when Texas has SML, OCCC, home-equity, or Finance Code rules
- -Confusing Texas-SML and Texas-OCCC education, licensing, renewal, and product-scope requirements
- -Treating Texas 50(a)(6), temporary authority, exemptions, records, advertisements, or enforcement rules as optional
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