A Texas salesperson takes 12 residential applications for compensation in 2026 and never discusses any terms. Does taking compensated residential applications satisfy the Texas originator definition without also negotiating terms?
Correct Answer
C) An originator: taking an application is enough on its own here
A residential mortgage loan originator is an individual who, for compensation or gain or in the expectation of it, takes a residential mortgage loan application or offers or negotiates the terms, and either limb is sufficient. Other choices: never discussing terms leaves the first limb satisfied; requiring both of the 2 activities reads the disjunction as a conjunction, which is the most consequential mistake in the chapter; and how the person is paid is not the test. Source: Tex. Fin. Code sec. 180.002(19)(A)
Why This Is the Correct Answer
A residential mortgage loan originator is an individual who, for compensation or gain or in the expectation of it, takes a residential mortgage loan application or offers or negotiates the terms, and either limb is sufficient. Other choices: never discussing terms leaves the first limb satisfied; requiring both of the 2 activities reads the disjunction as a conjunction, which is the most consequential mistake in the chapter; and how the person is paid is not the test. Source: Tex. Fin. Code sec. 180.002(19)(A)
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