Texas Mortgage Loan Originator

How many hours of NMLS-approved pre-licensing education does Texas-SML require for a new residential MLO license?

• A8 hours
• B15 hours
• C20 hours of national SAFE education only
• D23 hours (20 hours national SAFE education plus 3 hours of Texas-specific law)

Which agency is the primary regulator of mortgage loan originators in Texas?

• ATX Real Estate Commission
• BTX Department of Savings and Mortgage Lending
• CTX Department of Insurance
• DTX Banking Department

What type of foreclosure is primarily used in Texas?

• AJudicial foreclosure
• BNon-judicial foreclosure
• CStrict foreclosure
• DBoth equally

What is unique about the timing of foreclosure sales in Texas?

• ASales can occur any day
• BSales must occur on the first Tuesday of each month
• CSales only happen in December
• DSales must occur on the last Friday of each month

What are Texas's unique homestead protections under the Texas Constitution?

• ANo homestead protections exist
• BThe Texas Constitution provides strong homestead protections including restrictions on fo…
• CHomestead protections only apply to farms
• DProtections only apply to properties over $500,000

Under Texas Constitution Section 50(a)(6), what is the maximum loan-to-value ratio for a home equity loan?

• A70%
• B80%
• C90%
• D100%

Under Texas Finance Code Chapters 156/157, which statement best describes surety-bond or financial-responsibility requirements for residential mortgage licensing?

• AEvery individual MLO must personally post a flat $25,000 surety bond
• BMortgage companies must meet SML financial-responsibility standards (such as minimum net…
• CNo financial-responsibility requirements apply to any mortgage company
• DOnly federally chartered banks must post a $100,000 individual MLO bond

What examination must a Texas MLO applicant pass, and what is the minimum passing score?

• AA separate 55-question Texas-only state exam with a 65% passing score
• BThe SAFE MLO National Test with Uniform State Content (UST) with a score of at least 75%
• COnly a Texas Finance Commission oral interview
• DA 200-question federal-only exam with an 80% passing score

Under Texas Constitution Article XVI, Section 50(a)(6), when may a home equity loan close relative to the 12-day cooling-off period?

• AImmediately upon application with no waiting period
• BNo earlier than the 12th calendar day after the later of (i) the owner's loan application…
• CThree business days after the Closing Disclosure only (TILA rescission substitutes for th…
• DThirty calendar days after appraisal delivery

What notice period is required before a non-judicial foreclosure sale in Texas?

• ANo notice required
• BAt least 21 days before the sale, after a 20-day cure period
• C60 days
• D1 year

What enforcement authority does the TX Department of Savings and Mortgage Lending have?

• ANo enforcement authority
• BAuthority to examine, investigate, impose administrative penalties up to $25,000 for each…
• COnly the power to issue warnings
• DOnly federal agencies can enforce

Under the Texas SAFE Act, what activities require an MLO license?

• AOnly appraisals
• BTaking a residential mortgage loan application and offering or negotiating loan terms
• COnly title searches
• DOnly insurance sales

What is the Texas requirement regarding prepayment penalties on home equity loans?

• APrepayment penalties are required
• BPrepayment penalties are prohibited on Texas home equity loans under the Texas Constituti…
• CPenalties are limited to 5%
• DOnly penalties over $1,000 are prohibited

How many continuing education hours does Texas require annually for MLO license renewal?

• A4 hours
• B8 hours
• C12 hours
• D16 hours

Under Texas Constitution Article XVI, Section 50(a)(6), what is the consequence if a home equity loan exceeds the 80% fair-market-value lien cap and the lender fails to cure after notice?

• ANothing — the LTV limit is only advisory
• BThe lender must correct the failure within 60 days after borrower notice or risk forfeitu…
• CThe borrower automatically pays a statutory penalty to the state
• DOnly the excess above 80% LTV is forgiven while the rest remains fully enforceable withou…

What background check requirements apply to Texas MLO applicants?

• AOnly a credit check
• BFBI criminal background check through fingerprinting and a credit report
• COnly a state criminal check
• DNo background checks

In Texas, what is the borrower's right to cure a mortgage default?

• ANo right to cure
• BThe borrower must receive at least a 20-day notice to cure before foreclosure proceedings…
• CA 5-day cure period
• DCure is only available through the court

What is the significance of the Texas Property Code Chapter 51 for foreclosure?

• AIt has no relevance
• BChapter 51 governs the non-judicial foreclosure process in Texas, including notice and sa…
• CIt only applies to commercial property
• DIt sets interest rates