a Texas compliance file raises a the state-specific MLO rule question involving Constitution Article XVI Section 50(a)(6) permits a home equity loan only under detailed constitutional conditions, including voluntary consent. Which statement is supported by the state rule?
Correct Answer
D) Texas Constitution Article XVI Section 50(a)(6) permits a home equity loan only under detailed constitutional conditions, including voluntary consent by each owner and spouse of each owner.
Texas Constitution Article XVI Section 50(a)(6) permits a home equity loan only under detailed constitutional conditions, including voluntary consent by each owner and spouse of each owner.
Why This Is the Correct Answer
The correct response is "Texas Constitution Article XVI Section 50(a)(6) permits a home equity loan only under detailed constitutional conditions, including voluntary consent by each owner and spouse of each owner." because Texas Constitution Article XVI Section 50(a)(6) permits a home equity loan only under detailed constitutional conditions, including voluntary consent by each owner and spouse of each owner.
Why the Other Options Are Wrong
Option A: Apply a familiar national rule without checking the state-specific condition.
Apply a familiar national rule without checking the state-specific condition. is not correct because it does not apply the rule tested by this file scenario.
Option B: Proceed first and document the compliance issue only if an examiner asks.
Proceed first and document the compliance issue only if an examiner asks. is not correct because it does not apply the rule tested by this file scenario.
Option C: Treat the requirement as optional because the file appears low risk.
Treat the requirement as optional because the file appears low risk. is not correct because it does not apply the rule tested by this file scenario.
Memory Technique
Texas the state-specific MLO rule: identify the rule being tested, then choose the action that documents or applies that rule before the file moves forward.
Exam Tip
Match the file facts to Texas the state-specific MLO rule; do not choose an exception or shortcut that skips the required rule.
Common Mistakes to Avoid
- -Choosing an internal exception instead of the governing rule
- -Treating preliminary or informal facts as a substitute for required documentation
- -Answering from a familiar but unrelated mortgage topic
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