Texas Compliance (45%)

Question 1

Licensed persons are permitted under Texas law to charge only the following fees for assisting a mortgage applicant in obtaining a residential mortgage loan:

Answer 1

 Credit report fee
 Real estate appraisal fee
 A fee for processing a residential mortgage loan application
 Residential mortgage loan application fee
 A fee for automated underwriting
 Courier service fee
 Loan commitment fee
 A lock-in fee. A fee for locking in an interest rate may only be charged if there is a signed, written agreement between the mortgage applicant and the loan originator that contains a clear statement as to whether a fee to lock in an interest rate is refundable, and, if so, the terms and conditions necessary to obtain the refund.

Question 2

What 4 Disclosures and Agreements are specific for Texas?

Answer 2

1. Mortgage Banker Disclosure
2. Disclosures to Applicants
3. Notice of Penalties for Making False or Misleading Written Statements
4. Disclosure of Third Party Fees

Question 3

Where must the Mortgage Banker Disclosure be posted?

Answer 3

-in each registered office where business is conducted. If a licensee maintains a website, the notice must be included in a screen prominently displayed on the website.

COMPLAINTS REGARDING MORTGAGE BANKERS SHOULD BE SENT TO THE DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, Texas Department of Savings and Mortgage Lending, 2601 N. Lamar, Suite 201, Austin, TX 78705. A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550.

Question 4

When and how must the Notice of Penalties for Making False or Misleading Written Statements be done correctly?

Answer 4

At the time of closing, licensees are required to provide the borrower with a written notice concerning false statements. The notice must be provided as a separate document and printed in at least 14-point type. The borrower must acknowledge receipt of the notice by signing a copy. While the notice is a requirement, the statute notes that failure to provide the disclosure does not affect the validity or enforceability of the loan itself.

Question 5

Loan originators must place the following information in all advertisements:

Answer 5

 The name of the residential mortgage loan originator (followed by the phrase “Residential Mortgage Loan Originator”)
 The unique identifier of the residential mortgage loan originator
 The physical street address in Texas of the residential mortgage loan originator or mortgage banker employee

Question 6

Who does the Commissioner ask to issue an order compelling compliance with the subpoena?

Answer 6

the District Court in Travis County

Question 7

Individuals who violate a cease and desist order may face an administrative penalty in an amount up to…

Answer 7

$1,000 for each day on which the violation is continuing

Question 8

If the Commissioner has reasonable cause to believe that a licensee has violated or is about to violate a mortgage law or an order of the Commissioner, the Commissioner can issue, without notice and hearing…

Answer 8

a cease and desist order from continuing a particular action, or an order to take affirmative action, or both.

Question 9

After notice and opportunity for a hearing, the Commissioner may impose an administrative penalty on a person who has violated any of the Texas laws governing mortgage professional or any related regulations. How much?

Answer 9

Monetary penalties may be imposed up to $25,000 per violation.

Question 10

A person who is neither licensed nor exempt and who acts as a residential mortgage loan originator commits a ________ misdemeanor. A second or subsequent conviction must be punished as a ______ misdemeanor.

Answer 10

• Class B

- Class A

Question 11

An individual found guilty of a Class A misdemeanor shall be punished by:

Answer 11

 A fine not to exceed $4,000
 Confinement in jail for a term not to exceed one year, or
 Both such fine and confinement

Question 12

An individual found guilty of a Class B misdemeanor shall be punished by:

Answer 12

 A fine not to exceed $2,000
 Confinement in jail for a term not to exceed 180 days, or
 Both such fine and confinement