A licensing analyst is validating a Texas mortgage policy for sponsorship and employment status. Which statement is best?
Correct Answer
C) Texas SML mortgage-company licensees must keep regulator records current, including changes involving principal office, branch office, assumed name, sponsorship, control, or other material information within the applicable notice period.
Texas SML mortgage-company licensees must keep regulator records current, including changes involving principal office, branch office, assumed name, sponsorship, control, or other material information within the applicable notice period.
Why This Is the Correct Answer
Texas SML mortgage-company licensees must keep regulator records current, including changes involving principal office, branch office, assumed name, sponsorship, control, or other material information within the applicable notice period.
Why the Other Options Are Wrong
Option A: Treat sponsorship and employment status as optional because the company has a general Texas compliance policy.
Treat sponsorship and employment status as optional because the company has a general Texas compliance policy. is not correct because the governing rule requires the compliant answer shown in the explanation.
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 D: 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.
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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