A Texas file is paused during an MLO sponsorship update because of sponsorship and employment status. Which statement clears the compliance question?
Correct Answer
A) Texas mortgage banker and mortgage-company applicants must provide required disclosure or conditional-qualification notices when applicable, and those notices do not replace licensure, registration, or sponsorship requirements.
Texas mortgage banker and mortgage-company applicants must provide required disclosure or conditional-qualification notices when applicable, and those notices do not replace licensure, registration, or sponsorship requirements.
Why This Is the Correct Answer
Texas mortgage banker and mortgage-company applicants must provide required disclosure or conditional-qualification notices when applicable, and those notices do not replace licensure, registration, or sponsorship requirements.
Why the Other Options Are Wrong
Option B: Postpone the Texas sponsorship and employment status issue until the next annual review.
Postpone the Texas sponsorship and employment status issue until the next annual review. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Use only the federal baseline and ignore the separate Texas state requirement.
Use only the federal baseline and ignore the separate Texas state requirement. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Apply the rule only after the Texas regulator has already opened an examination.
Apply the rule only after the Texas regulator has already opened an examination. 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
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