During a Texas branch onboarding review, a sponsorship reviewer must resolve a question about licensing and NMLS authority. Which statement should control?
Correct Answer
A) Texas recognizes registered mortgage loan originators tied to depository institutions, Farm Credit System institutions, or regulated subsidiaries who are registered with NMLS rather than state-licensed.
Texas recognizes registered mortgage loan originators tied to depository institutions, Farm Credit System institutions, or regulated subsidiaries who are registered with NMLS rather than state-licensed.
Why This Is the Correct Answer
Texas recognizes registered mortgage loan originators tied to depository institutions, Farm Credit System institutions, or regulated subsidiaries who are registered with NMLS rather than state-licensed.
Why the Other Options Are Wrong
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 C: 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 D: 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.
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
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