During a Texas license review, an examiner asks about records, reports, and required notices. Which response is accurate?
Correct Answer
C) Texas 50(a)(6) closing costs are constitutionally capped at 2% of the original principal amount, excluding specified items such as appraisal, survey, title-insurance premium, title examination, and title-report costs.
Texas 50(a)(6) closing costs are constitutionally capped at 2% of the original principal amount, excluding specified items such as appraisal, survey, title-insurance premium, title examination, and title-report costs.
Why This Is the Correct Answer
Texas 50(a)(6) closing costs are constitutionally capped at 2% of the original principal amount, excluding specified items such as appraisal, survey, title-insurance premium, title examination, and title-report costs.
Why the Other Options Are Wrong
Option A: Assume another state's approval automatically satisfies the Texas requirement.
Assume another state's approval automatically satisfies the Texas requirement. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option B: Apply the Texas rule only to company licenses and never to individual MLO activity.
Apply the Texas rule only to company licenses and never to individual MLO activity. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Handle licensing and NMLS authority with an informal note rather than the required license, disclosure, filing, or record.
Handle licensing and NMLS authority with an informal note rather than the required license, disclosure, filing, or record. 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
More UST Questions
A Washington broker provides the federal settlement service estimates and booklet in 2026 and no separate state itemization. Can disclosures compliant with RESPA and Regulation X satisfy the state third-party itemization subsection?
Priya is comparing pre-license education providers before applying for a Florida mortgage loan originator license. How many hours of approved pre-license education must she complete in total?
An applicant is budgeting for a Florida MLO license and asks what the state application fee comes to at filing. Which figure is correct?
A newly sponsored Florida MLO is told she must buy an individual surety bond in her own name before she can originate. Is that correct?
A Washington consumer loan act licensee also brokers loans in 2026 outside the authority of that act. Does the consumer-loan-act exemption extend to mortgage brokerage outside that act’s authority?
A $200,000 Texas home equity loan has $3,700 in fees subject to the constitutional cap and a separate $600 fee for an appraisal performed by a third-party appraiser. Do the capped fees exceed the limit?
An owner applies for a Texas home equity loan on 4 May 2026 and the lender delivers the required notice on 8 May. Which date starts the constitutional 12-day waiting period for closing?
An owner closed a Texas home equity loan on 3 February 2026 and wants a second one on the same homestead in November 2026. Assuming no declared-emergency exception applies and the earlier home equity lien will be paid off, may the new loan close in November?
A Texas home equity loan forecloses and the sale leaves the lender $62,000 short of the balance owed. Absent actual fraud in obtaining the credit, may the lender recover the shortfall personally from the owner or spouse?
A Washington real estate broker helps a 2026 buyer arrange financing and takes only the usual sales commission. Does financing assistance incidental to a bona fide sale for only the customary real-estate commission fall within the exemption?
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