In a Texas mortgage operations checklist, a policy analyst sees a compliance issue involving advertising and consumer-protection controls. What should the file reflect?
Correct Answer
A) 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 B: Let production staff decide whether advertising and consumer-protection controls matters for the file.
Let production staff decide whether advertising and consumer-protection controls matters for the file. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Skip documentation because the new-license application appears routine.
Skip documentation because the new-license application appears routine. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: 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.
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?
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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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