For a Texas NMLS filing review, a policy analyst is training staff on continuing education and renewal. Which answer should be used?
Correct Answer
D) Apply the Texas SML/OCCC authority split by employer, product, and activity.
Texas SML generally licenses residential mortgage loan originators working for mortgage companies or mortgage bankers, while Texas OCCC generally licenses RMLOs tied to regulated consumer-credit activity such as secondary mortgage and home-equity lending, subject to statutory scope.
Why This Is the Correct Answer
Apply the Texas SML/OCCC authority split by employer, product, and activity. This is correct because Texas SML generally licenses residential mortgage loan originators working for mortgage companies or mortgage bankers, while Texas OCCC generally licenses RMLOs tied to regulated consumer-credit activity such as secondary mortgage and home-equity lending, subject to statutory scope.
Why the Other Options Are Wrong
Option A: Treat the timing or filing requirement as optional if the transaction appears low risk.
Treat the timing or filing requirement as optional if the transaction appears low risk. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option B: Assume the Texas requirement does not apply to this MLO sponsorship update.
Assume the Texas requirement does not apply to this MLO sponsorship update. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Treat continuing education and renewal as satisfied by borrower consent alone.
Treat continuing education and renewal as satisfied by borrower consent alone. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
TX -> tx-agency-scope-nmls-education-renewal
Exam Tip
Texas often tests the split between SML and OCCC, current NMLS TX-SML 23-hour PE, TX-OCCC 20-hour PE baseline, 8-hour CE, December 31 renewal timing, and the SAFE National Test with UST.
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?
An applicant previously had an MLO license revoked by a state regulator. Under the SAFE Act minimum standards for a new state-licensed MLO license, which statement is correct?
Which statement correctly distinguishes a license suspension from a license revocation?
A state regulator has issued an order suspending an MLO's authority effective immediately. The MLO has filed an appeal, but no stay has been granted. What should the MLO do?
An MLO license application asks whether the applicant has been the subject of a regulatory order. The applicant has a recent consent order that falls within the question. What is the proper response?
Why does NMLS maintain licensing and enforcement information that participating regulators can access?
A regulator issues a final license suspension without giving the MLO notice of the alleged violation or any opportunity to respond, even though applicable law requires both. What issue is presented?
A regulator finds that an MLO charged consumers prohibited fees. Which set of actions is consistent with the enforcement tools contemplated by Regulation H?
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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