Federal and State Mortgage-Related Laws
Federal statutes
Know the core framework: TILA/Reg Z (disclosures, APR, rescission), RESPA/Reg X (settlement costs, escrow, §8, servicing transfers), ECOA/Reg B (adverse action, monitoring data), HMDA (data reporting), FCRA (credit reports and permissible purpose), GLBA (privacy and safeguards), and the SAFE Act (licensing). The CFPB writes and enforces Reg Z, Reg X, and Reg B.
Texas licensing
Texas licenses residential mortgage loan originators through the Department of Savings and Mortgage Lending under Finance Code Chapter 180 and 7 TAC Chapter 80. Requirements include 20 hours of pre-licensure education, a passing SAFE test, a fingerprint-based background check, a surety bond where applicable, and eight hours of approved annual continuing education. Originate only under a licensed sponsor.
Texas home equity, Section 50(a)(6)
These rules appear on nearly every Texas exam. The loan must be secured by a homestead and not an agricultural homestead; combined liens may not exceed 80% of fair market value; the borrower cannot close until 12 days after the application or the required notice, whichever is later; the borrower has three days after closing to rescind; the loan must close at a title company, an attorney's office, or a lender's office; and prepayment penalties are not permitted.
Traps
Do not confuse the federal three-day rescission under Reg Z with Texas's separate home equity rescission and 12-day waiting period. Texas homestead protections are constitutional, not merely statutory, and home equity lines of credit have their own treatment under the same section.
Rule of thumb
For any Texas loan on a homestead, run the 50(a)(6) checklist first: homestead status, 80% cap, 12 days, three-day rescission, approved closing location.