A broker cannot say where a $950 deposit taken in March 2026 went after the borrower withdrew the application. What duty applies to accounting for the borrower’s deposit after withdrawal?
Correct Answer
A) Prohibited: a licensee accounts truthfully for the money of a party
A person may not fail to truthfully account for money belonging to a party to a residential mortgage loan transaction, so the broker must be able to show where the deposit went whatever happened to the application. Other choices: withdrawal does not convert a deposit into a forfeited fee without an agreement saying so; the 2% cap is a home equity fee limit and not a license to lose track of $950; and intent is not an element. Source: Tex. Fin. Code sec. 180.153(16)
Why This Is the Correct Answer
A person may not fail to truthfully account for money belonging to a party to a residential mortgage loan transaction, so the broker must be able to show where the deposit went whatever happened to the application. Other choices: withdrawal does not convert a deposit into a forfeited fee without an agreement saying so; the 2% cap is a home equity fee limit and not a license to lose track of $950; and intent is not an element. Source: Tex. Fin. Code sec. 180.153(16)
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