A policy analyst handling a Texas supervisory file review needs the compliant answer for advertising and consumer-protection controls. What should the reviewer choose?
Correct Answer
B) Texas mortgage entities may not recommend or encourage default, misapply borrower funds, conceal material information, or use deceptive practices to induce a borrower into a residential mortgage loan.
Texas mortgage entities may not recommend or encourage default, misapply borrower funds, conceal material information, or use deceptive practices to induce a borrower into a residential mortgage loan.
Why This Is the Correct Answer
Texas mortgage entities may not recommend or encourage default, misapply borrower funds, conceal material information, or use deceptive practices to induce a borrower into a residential mortgage loan.
Why the Other Options Are Wrong
Option A: Use another jurisdiction's approval as a substitute for the Texas requirement.
Use another jurisdiction's approval as a substitute for the Texas requirement. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Treat the requirement as waived because the borrower or employer agrees.
Treat the requirement as waived because the borrower or employer agrees. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option D: Assume another state's approval automatically satisfies the Texas requirement.
Assume another state's approval automatically satisfies the Texas requirement. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
TX -> tx-consumer-protection-prohibited-practices-complaints
Exam Tip
Texas consumer-protection items often test false or deceptive conduct, fair lending, complaint response, document production, conflicting roles, high-cost home-loan safeguards, and unlicensed or unauthorized origination.
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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