A lender preparing a Texas branch onboarding review asks an audit analyst about licensing and NMLS authority. Which response should be followed?
Correct Answer
C) Texas SML and OCCC consumer-facing complaint notices and regulator information must be used as required; complaint notices do not cure false advertising or unlicensed mortgage activity.
Texas SML and OCCC consumer-facing complaint notices and regulator information must be used as required; complaint notices do not cure false advertising or unlicensed mortgage activity.
Why This Is the Correct Answer
Texas SML and OCCC consumer-facing complaint notices and regulator information must be used as required; complaint notices do not cure false advertising or unlicensed mortgage activity.
Why the Other Options Are Wrong
Option A: Handle licensing and NMLS authority with an informal note rather than the required license, disclosure, filing, or record.
Handle licensing and NMLS authority with an informal note rather than the required license, disclosure, filing, or record. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option B: 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 D: 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.
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
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