A loan file reviewer compares company policy with Texas requirements during an MLO sponsorship update. Which statement fits sponsorship and employment status?
Correct Answer
A) A Texas mortgage loan originator may not receive compensation for an origination requiring Texas RMLO authority unless the individual holds the required authority and is properly sponsored or associated as required.
A Texas mortgage loan originator may not receive compensation for an origination requiring Texas RMLO authority unless the individual holds the required authority and is properly sponsored or associated as required.
Why This Is the Correct Answer
A Texas mortgage loan originator may not receive compensation for an origination requiring Texas RMLO authority unless the individual holds the required authority and is properly sponsored or associated as required.
Why the Other Options Are Wrong
Option B: Handle sponsorship and employment status with an informal note rather than the required license, disclosure, filing, or record.
Handle sponsorship and employment status 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.
Option C: Use another jurisdiction's approval as a substitute for the Texas requirement.
Use another jurisdiction's approval as a substitute for the Texas requirement. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: 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.
Memory Technique
TX -> tx-rmlo-definitions-exemptions-temporary-authority
Exam Tip
For Texas RMLO status, separate taking applications, offering or negotiating terms, compensation or gain, registered MLO status, role-specific exemptions, temporary authority, sponsorship, and criminal-history or financial-responsibility standards.
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
In a pricing desk question, an audit analyst sees facts tied to Prohibited Misrepresentation. What should the file reflect?
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An MLO's license status in NMLS changes to suspended, with no stay or reinstatement shown. What is the immediate operational effect?
Which fact most directly supports disciplinary action against an MLO rather than merely a request for additional application information?
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