A registered originator applies to Texas SML after leaving a bank for a licensed lender. All eligibility conditions are satisfied and SML recognizes temporary-authority status in NMLS. What maximum duration does Texas specify?
Correct Answer
A) Temporary authority to originate runs for a maximum of 120 days
Texas Finance Code section 180.0511 and SML temporary-authority guidance specify up to 120 days. It is not a guaranteed 120-day license: application disposition or another ending event can terminate authority earlier. The question concerns the Texas limit, not a blanket rule for every state. Source: Tex. Fin. Code sec. 180.0511; 7 TAC 55.109; Texas SML Temporary Authority FAQ
Why This Is the Correct Answer
Texas Finance Code section 180.0511 and SML temporary-authority guidance specify up to 120 days. It is not a guaranteed 120-day license: application disposition or another ending event can terminate authority earlier. The question concerns the Texas limit, not a blanket rule for every state. Source: Tex. Fin. Code sec. 180.0511; 7 TAC 55.109; Texas SML Temporary Authority FAQ
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