A supervisor wants to avoid a Texas licensing error related to advertising and consumer-protection controls. Which statement is safest to rely on?
Correct Answer
B) 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: Skip documentation because the record-retention audit appears routine.
Skip documentation because the record-retention audit appears routine. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Rely on prior mortgage experience instead of the stated licensing or compliance requirement.
Rely on prior mortgage experience instead of the stated licensing or compliance requirement. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Continue the activity and document the issue only if a complaint is later filed.
Continue the activity and document the issue only if a complaint is later filed. 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
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