A Texas attorney negotiates loan terms for a client as part of a 2026 estate matter, and also takes the application. Does taking the application as well as negotiating the terms defeat this attorney exemption?
Correct Answer
D) Not exempt: taking the application and negotiating terms ends it
A licensed attorney negotiating loan terms for a client as an ancillary matter is exempt unless the attorney both takes a residential mortgage loan application and offers or negotiates the terms, which is what happened here. Other choices: the exemption is conditional rather than absolute; the work being ancillary satisfies one half of the exemption while the application destroys it; and years in practice is not a condition. Source: Tex. Fin. Code sec. 180.003(a)(3)
Why This Is the Correct Answer
A licensed attorney negotiating loan terms for a client as an ancillary matter is exempt unless the attorney both takes a residential mortgage loan application and offers or negotiates the terms, which is what happened here. Other choices: the exemption is conditional rather than absolute; the work being ancillary satisfies one half of the exemption while the application destroys it; and years in practice is not a condition. Source: Tex. Fin. Code sec. 180.003(a)(3)
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