UST TEXAS EXAM Questions and answers
2025
The ,authority ,to ,regulate ,mortgage ,professionals ,in ,Texas ,arises ,from ,the
,following ,laws ,found ,in ,the ,Finance ,Code ,(Fin. ,Code):
,The ,Residential ,Mortgage ,Loan ,Company ,Licensing ,and ,Registration ,Act ,(the
,RMLC), ,Chapter ,156
,The ,Mortgage ,Banker ,and ,Residential ,Mortgage ,Loan ,Originator ,Act ,(the
,MBRA), ,Chapter ,157
,The ,Texas ,Secure ,and ,Fair ,Enforcement ,for ,Mortgage ,Licensing ,Act ,of ,2009
,(the ,Act), ,Chapter ,180
Rules ,created ,to ,enforce ,those ,laws ,are ,found ,in ,Title ,7 ,of ,the ,Texas
,Administrative ,Code ,(TAC) ,in ,Chapters ,80 ,and ,81. ,Chapter ,80 ,covers ,the
,licensing ,of ,residential ,mortgage ,loan ,companies ,and ,mortgage ,loan
,originators; ,Chapter ,81 ,covers ,mortgage ,banker ,registration ,and ,mortgage ,loan
,officer ,licensing. ,- ,CORRECT ,ANSWER-
The ,new ,standards ,found ,in ,the ,Act, ,the ,RMLC ,and ,the ,MBRA ,affect ,uniformity,
,regulatory ,burden, ,consumer ,protection ,and ,fraud ,in ,the ,mortgage ,industry.
,Those ,laws:
,impose ,conditions ,on ,the ,licensing ,and ,registration ,of ,mortgage ,professionals
,in ,Texas, ,including ,education ,and ,testing;
,expand ,the ,Commissioner's ,enforcement ,and ,investigative ,authority; ,and
,prohibit ,certain ,actions ,by ,lending ,professionals. ,- ,CORRECT ,ANSWER-
,The ,Finance ,Commission ,is ,responsible ,for ,the ,oversight ,and ,coordination ,of
,the ,- ,CORRECT ,ANSWER-1. ,Department ,of ,Banking, ,
2. ,Office ,of ,the ,Consumer ,Credit ,Commissioner ,and ,
3. ,Department ,of ,Savings ,and ,Mortgage ,Lending. ,
,- ,oversees ,reguluation ,of ,mtg ,professionals
A ,commissioner's ,designee ,is ,- ,CORRECT ,ANSWER-an ,employee ,of ,the
,Department, ,performing ,his ,assigned ,duties, ,or ,any ,other ,such ,person ,as ,the
,Commissioner ,may ,designate ,in ,writing. ,A ,designee ,is ,deemed ,to ,be ,the
,Commissioner's ,authorized ,personnel ,or ,representative.
The ,Mortgage ,Industry ,Advisory ,Committee ,- ,CORRECT ,ANSWER-advises ,and
,assists ,the ,Commissioner ,in ,proposing ,and ,adopting ,rules ,related ,to ,the
,mortgage ,lending ,industry. ,The ,committee ,is ,comprised ,of ,six ,members, ,each
,serving ,a ,three-year ,term, ,appointed ,by ,the ,Commissioner.
Each ,of ,the ,members ,must ,be ,of ,the ,Mortgage ,Industry ,Advisory ,Committee
,must ,be: ,- ,CORRECT ,ANSWER-- ,under ,the ,regulatory ,authority ,of ,the
,Department;
- ,actively ,engaged ,in ,the ,business ,of ,originating, ,brokering ,or ,funding
,residential ,mortgage ,loans ,at ,the ,time ,of ,appointment; ,and
,- ,primarily ,engaged ,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 ,an ,active ,real ,estate ,broker ,or ,salesperson ,license ,issued
,under ,Chapter ,1101.
Enforcement ,Authority ,of ,the ,Commissioner ,(Fin. ,Code ,§180.201, ,-.203)
To ,administer ,and ,enforce ,the ,mortgage ,laws ,of ,Texas, ,the ,Commissioner ,is
,authorized ,to: ,- ,CORRECT ,ANSWER-deny, ,suspend, ,revoke, ,condition ,or
,decline ,to ,renew ,the ,license ,of ,a ,residential ,mortgage ,loan ,originator.
,impose ,discipline ,for ,a ,violation ,of ,the ,Act ,by:
,ordering ,the ,payment ,of ,restitution;
,imposing ,an ,administrative ,penalty;
,issuing ,a ,cease-and-desist ,order; ,and/or
,enjoining ,a ,violation ,of ,the ,mortgage ,laws ,and ,rules.
,in ,consultation ,with ,the ,Finance ,Commission, ,adopt ,rules ,for:
,conducting ,background ,checks; ,and
,the ,payment ,of ,fees ,for ,initial ,licensure ,and ,renewal.
,,establish ,a ,relationship ,or ,contract ,with ,the ,NMLS ,to ,collect ,and ,maintain
,records ,and ,process ,fees ,related ,to ,licensed ,residential ,mortgage ,loan
,originators ,and ,others ,regulated ,by ,the ,Act. ,(Fin. ,Code ,§180.252)
,utilize ,the ,NMLS ,as ,a ,channeling ,agent ,for ,exchanging ,information ,with ,the
,U.S. ,Department ,of ,Justice, ,any ,governmental ,agency ,or ,any ,other ,source ,as
,directed ,by ,the ,regulatory ,official.
Authority ,of ,the ,Finance ,Commission ,(Fin. ,Code ,§156.102, ,§157.02015)
The ,Finance ,Commission ,is ,authorized ,to ,adopt ,rules ,necessary ,to: ,-
,CORRECT ,ANSWER-ensure ,compliance ,with ,the ,RMLC.
,participate ,in ,and/or ,transition ,to ,the ,NMLS ,and ,carry ,out ,the ,intentions ,of ,the
,federal ,SAFE ,Act.
,administer ,the ,Recovery ,Fund ,(the ,Fund).
,standardize ,the ,maintenance ,of ,books ,and ,records ,a ,licensee ,is ,required ,to
,keep, ,including ,the ,location ,at ,which ,the ,books ,and ,records ,must ,be ,kept.
,prohibit ,false, ,misleading ,or ,deceptive ,practices ,by ,mortgage ,licensees.
,However, ,the ,rules ,may ,not ,restrict ,competitive ,bidding ,or ,advertising ,by
,residential ,mortgage ,loan ,originators ,by ,restricting:
,the ,use ,of ,any ,medium ,for ,an ,advertisement;
,the ,personal ,appearance ,or ,voice ,of ,a ,person ,in ,an ,advertisement;
,the ,size ,or ,duration ,of ,an ,advertisement; ,or
,a ,residential ,mortgage ,loan ,originator's ,advertisement ,under ,a ,trade ,name.
(Fin. ,Code ,§156.105; ,§157.011)
The ,Finance ,Commission ,is ,also ,charged ,with ,creating ,standard ,forms ,for
,preapproval ,or ,prequalification ,of ,a ,loan ,applicant ,and ,adopting ,rules ,requiring
,licensees ,to ,use ,the ,forms.
NMLS ,Responsibilities ,of ,the ,Commissioner
Confidentiality ,(Fin. ,Code ,§180.062). ,- ,CORRECT ,ANSWER-The ,Commissioner
,may ,share ,confidential ,information ,with ,federal ,and ,state ,regulatory ,officials
,having ,mortgage ,industry ,oversight ,authority, ,including ,the ,NMLS. ,All ,privacy
,and ,confidentiality ,requirements ,or ,privileges ,allowable ,under ,federal ,or ,state
,law ,apply ,to ,information ,or ,material ,disclosed ,to ,the ,NMLS ,and ,any
,information ,or ,materials ,shared ,under ,an ,agreement ,or ,sharing ,arrangement. ,In
,any ,case ,where ,Texas ,state ,law ,provides ,less ,confidentiality ,or ,weaker
,privilege ,than ,is ,provided ,for ,under ,the ,SAFE ,Act, ,federal ,law ,will ,apply.
Unless ,waived ,by ,the ,person ,who ,is ,the ,subject ,of ,confidential ,information ,or
,material ,held ,by ,the ,NMLS, ,such ,materials ,are ,not ,subject ,to ,disclosure: ,-
,CORRECT ,ANSWER-under ,any ,state ,or ,federal ,law ,requiring ,the ,disclosure ,of
,information ,held ,by ,an ,officer ,or ,agency ,of ,the ,government; ,or
, ,by ,way ,of ,subpoena, ,discovery ,or ,admission ,into ,evidence ,in ,a ,private ,civil
,action ,or ,administrative ,proceeding.
However, ,the ,NMLS ,is ,authorized ,to ,publish ,and ,make ,available ,to ,the ,public
,information ,about ,a ,loan ,originators: ,- ,CORRECT ,ANSWER-employment
,history; ,and/or
,publicly ,adjudicated ,disciplinary ,and ,enforcement ,actions.
Reporting ,of ,Violations/Enforcement ,Actions ,(Fin. ,Code ,§180.102) ,- ,CORRECT
,ANSWER-The ,Commissioner ,must ,on ,a ,regular ,basis ,report ,to ,the ,NMLS
,violations ,of, ,enforcement ,actions ,under ,or ,information ,relevant ,to ,the ,Texas
,SAFE ,Act, ,which ,involve ,licensees ,or ,exempt ,persons ,registered ,under ,the ,Act.
Information ,Challenge ,(Fin. ,Code ,§180.103) ,- ,CORRECT ,ANSWER-The
,Department ,must ,establish ,a ,procedure ,under ,which ,a ,licensed ,residential
,mortgage ,loan ,originator ,may ,dispute ,information ,submitted ,by ,the ,Department
,to ,the ,NMLS.
Investigations ,- ,CORRECT ,ANSWER-The ,Commissioner ,is ,authorized ,to
,conduct ,inspections, ,which ,include ,examinations, ,and ,investigations ,for ,a
,number ,of ,reasons.
For ,reasonable ,cause, ,the ,Commissioner ,may ,at ,any ,time ,investigate ,a
,residential ,mortgage ,loan ,originator ,to ,determine ,whether ,he ,is ,complying ,with
,the ,laws ,and ,applicable ,rules. ,A ,mortgage ,banker ,may ,be ,requested ,to ,assist
,or ,cooperate ,with ,the ,Commissioner ,in ,the ,investigation ,by ,providing
,documents ,and ,records ,necessary. ,However, ,the ,Commissioner ,may ,not ,ask
,the ,mortgage ,banker ,for ,documents ,and ,records ,unrelated ,to ,the ,licensee
,being ,investigated ,or ,inspected.
Additionally, ,based ,on ,a ,signed ,written ,complaint ,by ,any ,person, ,the
,Commissioner ,may ,investigate ,the ,actions ,and ,records ,of ,a ,licensee ,if ,the
,complaint ,and/or ,its ,documentary ,evidence ,provides ,reasonable ,cause. ,Upon
,receipt ,of ,the ,complaint, ,the ,Commissioner ,will ,determine ,whether ,an
,investigation ,is ,warranted. ,If ,not, ,he ,will ,advise ,the ,complainant ,and ,close ,the
,file.
The ,Commissioner ,may ,also: ,- ,CORRECT ,ANSWER-conduct ,an ,undercover ,or
,covert ,investigation ,if ,he ,determines ,that ,the ,investigation ,is ,necessary ,to
,prevent ,immediate ,harm ,and ,to ,carry ,out ,the ,purpose ,of ,the ,RMLC.
,share ,evidence ,of ,criminal ,activity ,gathered ,during ,an ,inspection ,or
,investigation ,with ,any ,state ,or ,federal ,law ,enforcement ,agency.
2025
The ,authority ,to ,regulate ,mortgage ,professionals ,in ,Texas ,arises ,from ,the
,following ,laws ,found ,in ,the ,Finance ,Code ,(Fin. ,Code):
,The ,Residential ,Mortgage ,Loan ,Company ,Licensing ,and ,Registration ,Act ,(the
,RMLC), ,Chapter ,156
,The ,Mortgage ,Banker ,and ,Residential ,Mortgage ,Loan ,Originator ,Act ,(the
,MBRA), ,Chapter ,157
,The ,Texas ,Secure ,and ,Fair ,Enforcement ,for ,Mortgage ,Licensing ,Act ,of ,2009
,(the ,Act), ,Chapter ,180
Rules ,created ,to ,enforce ,those ,laws ,are ,found ,in ,Title ,7 ,of ,the ,Texas
,Administrative ,Code ,(TAC) ,in ,Chapters ,80 ,and ,81. ,Chapter ,80 ,covers ,the
,licensing ,of ,residential ,mortgage ,loan ,companies ,and ,mortgage ,loan
,originators; ,Chapter ,81 ,covers ,mortgage ,banker ,registration ,and ,mortgage ,loan
,officer ,licensing. ,- ,CORRECT ,ANSWER-
The ,new ,standards ,found ,in ,the ,Act, ,the ,RMLC ,and ,the ,MBRA ,affect ,uniformity,
,regulatory ,burden, ,consumer ,protection ,and ,fraud ,in ,the ,mortgage ,industry.
,Those ,laws:
,impose ,conditions ,on ,the ,licensing ,and ,registration ,of ,mortgage ,professionals
,in ,Texas, ,including ,education ,and ,testing;
,expand ,the ,Commissioner's ,enforcement ,and ,investigative ,authority; ,and
,prohibit ,certain ,actions ,by ,lending ,professionals. ,- ,CORRECT ,ANSWER-
,The ,Finance ,Commission ,is ,responsible ,for ,the ,oversight ,and ,coordination ,of
,the ,- ,CORRECT ,ANSWER-1. ,Department ,of ,Banking, ,
2. ,Office ,of ,the ,Consumer ,Credit ,Commissioner ,and ,
3. ,Department ,of ,Savings ,and ,Mortgage ,Lending. ,
,- ,oversees ,reguluation ,of ,mtg ,professionals
A ,commissioner's ,designee ,is ,- ,CORRECT ,ANSWER-an ,employee ,of ,the
,Department, ,performing ,his ,assigned ,duties, ,or ,any ,other ,such ,person ,as ,the
,Commissioner ,may ,designate ,in ,writing. ,A ,designee ,is ,deemed ,to ,be ,the
,Commissioner's ,authorized ,personnel ,or ,representative.
The ,Mortgage ,Industry ,Advisory ,Committee ,- ,CORRECT ,ANSWER-advises ,and
,assists ,the ,Commissioner ,in ,proposing ,and ,adopting ,rules ,related ,to ,the
,mortgage ,lending ,industry. ,The ,committee ,is ,comprised ,of ,six ,members, ,each
,serving ,a ,three-year ,term, ,appointed ,by ,the ,Commissioner.
Each ,of ,the ,members ,must ,be ,of ,the ,Mortgage ,Industry ,Advisory ,Committee
,must ,be: ,- ,CORRECT ,ANSWER-- ,under ,the ,regulatory ,authority ,of ,the
,Department;
- ,actively ,engaged ,in ,the ,business ,of ,originating, ,brokering ,or ,funding
,residential ,mortgage ,loans ,at ,the ,time ,of ,appointment; ,and
,- ,primarily ,engaged ,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 ,an ,active ,real ,estate ,broker ,or ,salesperson ,license ,issued
,under ,Chapter ,1101.
Enforcement ,Authority ,of ,the ,Commissioner ,(Fin. ,Code ,§180.201, ,-.203)
To ,administer ,and ,enforce ,the ,mortgage ,laws ,of ,Texas, ,the ,Commissioner ,is
,authorized ,to: ,- ,CORRECT ,ANSWER-deny, ,suspend, ,revoke, ,condition ,or
,decline ,to ,renew ,the ,license ,of ,a ,residential ,mortgage ,loan ,originator.
,impose ,discipline ,for ,a ,violation ,of ,the ,Act ,by:
,ordering ,the ,payment ,of ,restitution;
,imposing ,an ,administrative ,penalty;
,issuing ,a ,cease-and-desist ,order; ,and/or
,enjoining ,a ,violation ,of ,the ,mortgage ,laws ,and ,rules.
,in ,consultation ,with ,the ,Finance ,Commission, ,adopt ,rules ,for:
,conducting ,background ,checks; ,and
,the ,payment ,of ,fees ,for ,initial ,licensure ,and ,renewal.
,,establish ,a ,relationship ,or ,contract ,with ,the ,NMLS ,to ,collect ,and ,maintain
,records ,and ,process ,fees ,related ,to ,licensed ,residential ,mortgage ,loan
,originators ,and ,others ,regulated ,by ,the ,Act. ,(Fin. ,Code ,§180.252)
,utilize ,the ,NMLS ,as ,a ,channeling ,agent ,for ,exchanging ,information ,with ,the
,U.S. ,Department ,of ,Justice, ,any ,governmental ,agency ,or ,any ,other ,source ,as
,directed ,by ,the ,regulatory ,official.
Authority ,of ,the ,Finance ,Commission ,(Fin. ,Code ,§156.102, ,§157.02015)
The ,Finance ,Commission ,is ,authorized ,to ,adopt ,rules ,necessary ,to: ,-
,CORRECT ,ANSWER-ensure ,compliance ,with ,the ,RMLC.
,participate ,in ,and/or ,transition ,to ,the ,NMLS ,and ,carry ,out ,the ,intentions ,of ,the
,federal ,SAFE ,Act.
,administer ,the ,Recovery ,Fund ,(the ,Fund).
,standardize ,the ,maintenance ,of ,books ,and ,records ,a ,licensee ,is ,required ,to
,keep, ,including ,the ,location ,at ,which ,the ,books ,and ,records ,must ,be ,kept.
,prohibit ,false, ,misleading ,or ,deceptive ,practices ,by ,mortgage ,licensees.
,However, ,the ,rules ,may ,not ,restrict ,competitive ,bidding ,or ,advertising ,by
,residential ,mortgage ,loan ,originators ,by ,restricting:
,the ,use ,of ,any ,medium ,for ,an ,advertisement;
,the ,personal ,appearance ,or ,voice ,of ,a ,person ,in ,an ,advertisement;
,the ,size ,or ,duration ,of ,an ,advertisement; ,or
,a ,residential ,mortgage ,loan ,originator's ,advertisement ,under ,a ,trade ,name.
(Fin. ,Code ,§156.105; ,§157.011)
The ,Finance ,Commission ,is ,also ,charged ,with ,creating ,standard ,forms ,for
,preapproval ,or ,prequalification ,of ,a ,loan ,applicant ,and ,adopting ,rules ,requiring
,licensees ,to ,use ,the ,forms.
NMLS ,Responsibilities ,of ,the ,Commissioner
Confidentiality ,(Fin. ,Code ,§180.062). ,- ,CORRECT ,ANSWER-The ,Commissioner
,may ,share ,confidential ,information ,with ,federal ,and ,state ,regulatory ,officials
,having ,mortgage ,industry ,oversight ,authority, ,including ,the ,NMLS. ,All ,privacy
,and ,confidentiality ,requirements ,or ,privileges ,allowable ,under ,federal ,or ,state
,law ,apply ,to ,information ,or ,material ,disclosed ,to ,the ,NMLS ,and ,any
,information ,or ,materials ,shared ,under ,an ,agreement ,or ,sharing ,arrangement. ,In
,any ,case ,where ,Texas ,state ,law ,provides ,less ,confidentiality ,or ,weaker
,privilege ,than ,is ,provided ,for ,under ,the ,SAFE ,Act, ,federal ,law ,will ,apply.
Unless ,waived ,by ,the ,person ,who ,is ,the ,subject ,of ,confidential ,information ,or
,material ,held ,by ,the ,NMLS, ,such ,materials ,are ,not ,subject ,to ,disclosure: ,-
,CORRECT ,ANSWER-under ,any ,state ,or ,federal ,law ,requiring ,the ,disclosure ,of
,information ,held ,by ,an ,officer ,or ,agency ,of ,the ,government; ,or
, ,by ,way ,of ,subpoena, ,discovery ,or ,admission ,into ,evidence ,in ,a ,private ,civil
,action ,or ,administrative ,proceeding.
However, ,the ,NMLS ,is ,authorized ,to ,publish ,and ,make ,available ,to ,the ,public
,information ,about ,a ,loan ,originators: ,- ,CORRECT ,ANSWER-employment
,history; ,and/or
,publicly ,adjudicated ,disciplinary ,and ,enforcement ,actions.
Reporting ,of ,Violations/Enforcement ,Actions ,(Fin. ,Code ,§180.102) ,- ,CORRECT
,ANSWER-The ,Commissioner ,must ,on ,a ,regular ,basis ,report ,to ,the ,NMLS
,violations ,of, ,enforcement ,actions ,under ,or ,information ,relevant ,to ,the ,Texas
,SAFE ,Act, ,which ,involve ,licensees ,or ,exempt ,persons ,registered ,under ,the ,Act.
Information ,Challenge ,(Fin. ,Code ,§180.103) ,- ,CORRECT ,ANSWER-The
,Department ,must ,establish ,a ,procedure ,under ,which ,a ,licensed ,residential
,mortgage ,loan ,originator ,may ,dispute ,information ,submitted ,by ,the ,Department
,to ,the ,NMLS.
Investigations ,- ,CORRECT ,ANSWER-The ,Commissioner ,is ,authorized ,to
,conduct ,inspections, ,which ,include ,examinations, ,and ,investigations ,for ,a
,number ,of ,reasons.
For ,reasonable ,cause, ,the ,Commissioner ,may ,at ,any ,time ,investigate ,a
,residential ,mortgage ,loan ,originator ,to ,determine ,whether ,he ,is ,complying ,with
,the ,laws ,and ,applicable ,rules. ,A ,mortgage ,banker ,may ,be ,requested ,to ,assist
,or ,cooperate ,with ,the ,Commissioner ,in ,the ,investigation ,by ,providing
,documents ,and ,records ,necessary. ,However, ,the ,Commissioner ,may ,not ,ask
,the ,mortgage ,banker ,for ,documents ,and ,records ,unrelated ,to ,the ,licensee
,being ,investigated ,or ,inspected.
Additionally, ,based ,on ,a ,signed ,written ,complaint ,by ,any ,person, ,the
,Commissioner ,may ,investigate ,the ,actions ,and ,records ,of ,a ,licensee ,if ,the
,complaint ,and/or ,its ,documentary ,evidence ,provides ,reasonable ,cause. ,Upon
,receipt ,of ,the ,complaint, ,the ,Commissioner ,will ,determine ,whether ,an
,investigation ,is ,warranted. ,If ,not, ,he ,will ,advise ,the ,complainant ,and ,close ,the
,file.
The ,Commissioner ,may ,also: ,- ,CORRECT ,ANSWER-conduct ,an ,undercover ,or
,covert ,investigation ,if ,he ,determines ,that ,the ,investigation ,is ,necessary ,to
,prevent ,immediate ,harm ,and ,to ,carry ,out ,the ,purpose ,of ,the ,RMLC.
,share ,evidence ,of ,criminal ,activity ,gathered ,during ,an ,inspection ,or
,investigation ,with ,any ,state ,or ,federal ,law ,enforcement ,agency.
