A loan file reviewer is updating Texas procedures for MLO sponsorship update and flags licensing and NMLS authority. Which answer is accurate?
Correct Answer
D) A Texas 50(a)(6) home equity loan generally may not close before 12 days after the owner submits the loan application or receives the required constitutional notice, whichever is later.
A Texas 50(a)(6) home equity loan generally may not close before 12 days after the owner submits the loan application or receives the required constitutional notice, whichever is later.
Why This Is the Correct Answer
A Texas 50(a)(6) home equity loan generally may not close before 12 days after the owner submits the loan application or receives the required constitutional notice, whichever is later.
Why the Other Options Are Wrong
Option A: Let production staff decide whether sponsorship and employment status matters for the file.
Let production staff decide whether sponsorship and employment status matters for the file. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option B: Skip documentation because the new-license application appears routine.
Skip documentation because the new-license application appears routine. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Rely on prior mortgage experience instead of the stated licensing or compliance requirement.
Rely on prior mortgage experience instead of the stated licensing or compliance requirement. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
TX -> tx-home-equity-50a6-reverse-mortgage-occc
Exam Tip
Texas home-equity questions are high value: remember 50(a)(6) consent, 80 percent LTV, nonrecourse, court-order foreclosure, 2 percent fee cap, 12-day wait, one-business-day final disclosure, no prepayment penalty, and HELOC/reverse-mortgage distinctions.
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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