An unlicensed Texan negotiates the terms of a $150,000 loan so a sibling can buy a house. Does the immediate-family exemption under Chapter 180 apply to negotiating for the sibling?
Correct Answer
B) Exempt: the terms are negotiated for an immediate family member
An individual who offers or negotiates the terms of a residential mortgage loan with or on behalf of an immediate family member is exempt from Chapter 180. Other choices: the exemption plainly exists, so an absolute license rule is wrong; who funds the $150,000 is not what the exemption turns on; and the family relationship rather than the absence of compensation is the test. Source: Tex. Fin. Code sec. 180.003(a)(2)
Why This Is the Correct Answer
An individual who offers or negotiates the terms of a residential mortgage loan with or on behalf of an immediate family member is exempt from Chapter 180. Other choices: the exemption plainly exists, so an absolute license rule is wrong; who funds the $150,000 is not what the exemption turns on; and the family relationship rather than the absence of compensation is the test. Source: Tex. Fin. Code sec. 180.003(a)(2)
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