A compliance manager is updating the Texas MLO checklist for examination, supervision, and enforcement. Which statement belongs in the checklist?
Correct Answer
B) Texas regulator examination, investigation, and enforcement authority applies as stated.
A Texas 50(a)(6) home equity loan may not contain a prepayment penalty, may not be secured by additional real or personal property, and generally only one 50(a)(6) lien may be secured by a homestead at a time.
Why This Is the Correct Answer
Texas regulator examination, investigation, and enforcement authority applies as stated. This is correct because A Texas 50(a)(6) home equity loan may not contain a prepayment penalty, may not be secured by additional real or personal property, and generally only one 50(a)(6) lien may be secured by a homestead at a time.
Why the Other Options Are Wrong
Option A: Skip documentation because the remote-work procedure appears routine.
Skip documentation because the remote-work procedure appears routine. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: 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.
Option D: Continue the activity and document the issue only if a complaint is later filed.
Continue the activity and document the issue only if a complaint is later filed. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
TX -> tx-home-equity-50a6-reverse-mortgage-occc
Exam Tip
Texas home-equity questions are high value: remember 50(a)(6) consent, 80 percent LTV, nonrecourse, court-order foreclosure, 2 percent fee cap, 12-day wait, one-business-day final disclosure, no prepayment penalty, and HELOC/reverse-mortgage distinctions.
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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A Texas home equity loan forecloses and the sale leaves the lender $62,000 short of the balance owed. Absent actual fraud in obtaining the credit, may the lender recover the shortfall personally from the owner or spouse?
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