A lender preparing a Texas training scenario asks a loan file reviewer about advertising and disclosure controls. Which response should be followed?
Correct Answer
D) Texas law prohibits unfair discrimination in mortgage lending based on protected characteristics such as race, color, religion, sex, national origin, ancestry, familial status, or disability.
Texas law prohibits unfair discrimination in mortgage lending based on protected characteristics such as race, color, religion, sex, national origin, ancestry, familial status, or disability.
Why This Is the Correct Answer
The correct response is "Texas law prohibits unfair discrimination in mortgage lending based on protected characteristics such as race, color, religion, sex, national origin, ancestry, familial status, or disability." because Texas law prohibits unfair discrimination in mortgage lending based on protected characteristics such as race, color, religion, sex, national origin, ancestry, familial status, or disability.
Why the Other Options Are Wrong
Option A: Use a verbal explanation instead of the required disclosure, record, or filing.
Use a verbal explanation instead of the required disclosure, record, or filing. is not correct because it does not apply the rule tested by this file scenario.
Option B: Keep only informal notes instead of the required state records or notices.
Keep only informal notes instead of the required state records or notices. is not correct because it does not apply the rule tested by this file scenario.
Option C: Apply a generic federal shortcut and ignore the state-specific condition.
Apply a generic federal shortcut and ignore the state-specific condition. is not correct because it does not apply the rule tested by this file scenario.
Memory Technique
Texas advertising and disclosure controls: identify the rule being tested, then choose the action that documents or applies that rule before the file moves forward.
Exam Tip
Match the file facts to Texas advertising and disclosure controls; do not choose an exception or shortcut that skips the required rule.
Common Mistakes to Avoid
- -Choosing an internal exception instead of the governing rule
- -Treating preliminary or informal facts as a substitute for required documentation
- -Answering from a familiar but unrelated mortgage topic
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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Which statement correctly distinguishes a license suspension from a license revocation?
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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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