A Texas file is paused during an NMLS filing review because of advertising and consumer-protection controls. Which statement clears the compliance question?
Correct Answer
C) Texas SML rules require residential mortgage loan companies and RMLOs to maintain required books, records, documents, and transaction files and make them available to the regulator for examination or investigation.
Texas SML rules require residential mortgage loan companies and RMLOs to maintain required books, records, documents, and transaction files and make them available to the regulator for examination or investigation.
Why This Is the Correct Answer
Texas SML rules require residential mortgage loan companies and RMLOs to maintain required books, records, documents, and transaction files and make them available to the regulator for examination or investigation.
Why the Other Options Are Wrong
Option A: 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.
Option B: 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 D: 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.
Memory Technique
TX -> tx-sml-company-banker-disclosures-records-reports
Exam Tip
Texas company questions often turn on Chapter 156 company licensing, Chapter 157 mortgage banker registration, qualifying individuals, MCRs, branch/location records, advertisements, disclosures, and regulator access to records.
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?
An applicant previously had an MLO license revoked by a state regulator. Under the SAFE Act minimum standards for a new state-licensed MLO license, which statement is correct?
Which statement correctly distinguishes a license suspension from a license revocation?
A state regulator has issued an order suspending an MLO's authority effective immediately. The MLO has filed an appeal, but no stay has been granted. What should the MLO do?
An MLO license application asks whether the applicant has been the subject of a regulatory order. The applicant has a recent consent order that falls within the question. What is the proper response?
Why does NMLS maintain licensing and enforcement information that participating regulators can access?
A regulator issues a final license suspension without giving the MLO notice of the alleged violation or any opportunity to respond, even though applicable law requires both. What issue is presented?
A regulator finds that an MLO charged consumers prohibited fees. Which set of actions is consistent with the enforcement tools contemplated by Regulation H?
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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