UST TEXAS EXAM QUESTIONS WITH 100%
VERIFIED ANSWERS
The authority to regulate mortgage professionals in Texas is derived from the
following statutes found in the Finance Code.
The Residential Mortgage Loan Company Licensing and Registration Act
(RMLC), Chapter 156
The Mortgage Banker and Residential Mortgage Loan Originator Act (MBRA),
Chapter 157
The Texas Secure and Fair Enforcement for Mortgage Licensing Act of 2009 (the
Act), Chapter 180
Chapters 80 and 81 of Title 7 of the Texas Administrative Code (TAC) include the
rules designed to enforce such statutes. Residential mortgage lending firms and
mortgage loan originators must be licensed under Chapter 80, while mortgage
banker registration and mortgage loan officer licensing are covered in Chapter 81. -
ANSWER
The new criteria outlined in the Act, RMLC, and MBRA have an impact on
mortgage sector standardization, regulatory burden, consumer protection, and
fraud. These laws:
establish standards for the licensure and registration of mortgage experts in Texas,
including education and testing;
Increase the Commissioner's enforcement and investigative powers; and
Lending professionals are prohibited from taking certain acts. - ANSWER
The Finance Commission oversees and coordinates the - ANSWER 1. The
Department of Banking
,2. The Office of the Consumer Credit Commissioner
3. Department for Savings and Mortgage Lending.
- supervises the regulation of marketing professionals.
A commissioner's designee is - ANSWER an employee of the Department doing
his assigned tasks, or any other person designated by the Commissioner in writing.
A designee is considered to be the Commissioner's approved personnel or
representative.
The Mortgage Industry Advisory Committee - ANSWER advises and aids the
Commissioner in drafting and enacting mortgage lending regulations. The
committee is made up of six members who are appointed by the Commissioner and
serve three-year terms.
Each member of the Mortgage Industry Advisory Committee must fall under the
Department's regulatory responsibility.
- actively involved in the business of originating, brokering, or funding residential
mortgage loans at the time of appointment.
- worked principally in the business of originating, brokering, or funding residential
mortgage loans for at least two years prior to appointment.
All six members must be licensed as residential mortgage loan originators, with
two also holding active real estate broker or salesperson licenses under Chapter
1101.
The Commissioner has enforcement authority under Fin. Code §180.201, -.203.
To administer and enforce Texas' mortgage laws, the Commissioner has the
authority to deny, suspend, revoke, condition, or decline to renew a residential
mortgage loan originator's license.
,To administer discipline for a violation of the Act,
directing the payment of restitution.
Imposing an administrative penalty.
issuing a cease-and-desist order.
enjoining a breach of mortgage laws and regulations.
In collaboration with the Finance Commission, adopt guidelines for:
Conducting background checks;
The payment of fees for initial licensure and renewal.
Establish a relationship or contract with the NMLS to collect and retain records, as
well as process fees for registered residential mortgage loan originators and others
subject to the Act's regulations. (Fin. Code § 180.252).
Use the NMLS as a channelling agent to exchange information with the United
States. Department of Justice, any governmental agency, or any other source
specified by the regulatory official.
Authority of the Finance Commission (Fin. Code §156.102, §157.02015).
The Finance Commission is allowed to enact rules to: - Ensure compliance with the
RMLC.
engage in and/or transition to the NMLS, and carry out the intent of the federal
SAFE Act.
administrate the Recovery Fund.
Standardize the maintenance of the books and documents that a licensee is
supposed to keep, including their placement.
Mortgage licensees are prohibited from engaging in false, misleading, or deceptive
practices. However, the rules may not limit competitive bidding or promotion by
residential mortgage loan originators by restricting:
, the utilization of any medium for advertising;
Personal appearance or voice of a person in an advertisement;
The size or duration of an advertising; or
A residential mortgage loan originator's advertisement under a trade name.
(Financial Code §156.105; §157.011).
The Finance Commission is also tasked with developing standard forms for
preapproval or prequalification of loan applicants and enacting rules mandating
licensees to utilize them.
NMLS Commissioner's Responsibilities
Confidentiality (Fin. Code section 180.062). - ANSWER: The Commissioner may
share sensitive information with federal and state regulatory agencies with
mortgage sector oversight power, such as the NMLS. All privacy and
confidentiality obligations or privileges permitted by federal or state law apply to
information or material disclosed to the NMLS, as well as information or materials
shared pursuant to an agreement or sharing arrangement. In any scenario in which
Texas state law affords less secrecy or fewer privileges than the SAFE Act, federal
law will apply.
Unless waived by the individual who is the subject of confidential information or
material maintained by the NMLS, such materials are not subject to disclosure: -
under any state or federal statute requiring the disclosure of information held by a
government officer or agency; or
In a private civil action or administrative proceeding, evidence may be obtained
through subpoena, discovery, or admission.
However, the NMLS is entitled to publish and make available to the public
information about a loan originator, such as: - job history; and/or
VERIFIED ANSWERS
The authority to regulate mortgage professionals in Texas is derived from the
following statutes found in the Finance Code.
The Residential Mortgage Loan Company Licensing and Registration Act
(RMLC), Chapter 156
The Mortgage Banker and Residential Mortgage Loan Originator Act (MBRA),
Chapter 157
The Texas Secure and Fair Enforcement for Mortgage Licensing Act of 2009 (the
Act), Chapter 180
Chapters 80 and 81 of Title 7 of the Texas Administrative Code (TAC) include the
rules designed to enforce such statutes. Residential mortgage lending firms and
mortgage loan originators must be licensed under Chapter 80, while mortgage
banker registration and mortgage loan officer licensing are covered in Chapter 81. -
ANSWER
The new criteria outlined in the Act, RMLC, and MBRA have an impact on
mortgage sector standardization, regulatory burden, consumer protection, and
fraud. These laws:
establish standards for the licensure and registration of mortgage experts in Texas,
including education and testing;
Increase the Commissioner's enforcement and investigative powers; and
Lending professionals are prohibited from taking certain acts. - ANSWER
The Finance Commission oversees and coordinates the - ANSWER 1. The
Department of Banking
,2. The Office of the Consumer Credit Commissioner
3. Department for Savings and Mortgage Lending.
- supervises the regulation of marketing professionals.
A commissioner's designee is - ANSWER an employee of the Department doing
his assigned tasks, or any other person designated by the Commissioner in writing.
A designee is considered to be the Commissioner's approved personnel or
representative.
The Mortgage Industry Advisory Committee - ANSWER advises and aids the
Commissioner in drafting and enacting mortgage lending regulations. The
committee is made up of six members who are appointed by the Commissioner and
serve three-year terms.
Each member of the Mortgage Industry Advisory Committee must fall under the
Department's regulatory responsibility.
- actively involved in the business of originating, brokering, or funding residential
mortgage loans at the time of appointment.
- worked principally in the business of originating, brokering, or funding residential
mortgage loans for at least two years prior to appointment.
All six members must be licensed as residential mortgage loan originators, with
two also holding active real estate broker or salesperson licenses under Chapter
1101.
The Commissioner has enforcement authority under Fin. Code §180.201, -.203.
To administer and enforce Texas' mortgage laws, the Commissioner has the
authority to deny, suspend, revoke, condition, or decline to renew a residential
mortgage loan originator's license.
,To administer discipline for a violation of the Act,
directing the payment of restitution.
Imposing an administrative penalty.
issuing a cease-and-desist order.
enjoining a breach of mortgage laws and regulations.
In collaboration with the Finance Commission, adopt guidelines for:
Conducting background checks;
The payment of fees for initial licensure and renewal.
Establish a relationship or contract with the NMLS to collect and retain records, as
well as process fees for registered residential mortgage loan originators and others
subject to the Act's regulations. (Fin. Code § 180.252).
Use the NMLS as a channelling agent to exchange information with the United
States. Department of Justice, any governmental agency, or any other source
specified by the regulatory official.
Authority of the Finance Commission (Fin. Code §156.102, §157.02015).
The Finance Commission is allowed to enact rules to: - Ensure compliance with the
RMLC.
engage in and/or transition to the NMLS, and carry out the intent of the federal
SAFE Act.
administrate the Recovery Fund.
Standardize the maintenance of the books and documents that a licensee is
supposed to keep, including their placement.
Mortgage licensees are prohibited from engaging in false, misleading, or deceptive
practices. However, the rules may not limit competitive bidding or promotion by
residential mortgage loan originators by restricting:
, the utilization of any medium for advertising;
Personal appearance or voice of a person in an advertisement;
The size or duration of an advertising; or
A residential mortgage loan originator's advertisement under a trade name.
(Financial Code §156.105; §157.011).
The Finance Commission is also tasked with developing standard forms for
preapproval or prequalification of loan applicants and enacting rules mandating
licensees to utilize them.
NMLS Commissioner's Responsibilities
Confidentiality (Fin. Code section 180.062). - ANSWER: The Commissioner may
share sensitive information with federal and state regulatory agencies with
mortgage sector oversight power, such as the NMLS. All privacy and
confidentiality obligations or privileges permitted by federal or state law apply to
information or material disclosed to the NMLS, as well as information or materials
shared pursuant to an agreement or sharing arrangement. In any scenario in which
Texas state law affords less secrecy or fewer privileges than the SAFE Act, federal
law will apply.
Unless waived by the individual who is the subject of confidential information or
material maintained by the NMLS, such materials are not subject to disclosure: -
under any state or federal statute requiring the disclosure of information held by a
government officer or agency; or
In a private civil action or administrative proceeding, evidence may be obtained
through subpoena, discovery, or admission.
However, the NMLS is entitled to publish and make available to the public
information about a loan originator, such as: - job history; and/or
