By: Carona S.B. No. 585
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to exemption of certain persons from the license
1-3 requirements imposed under the Mortgage Broker License Act.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 156.202, Finance Code, is amended to read
1-6 as follows:
1-7 Sec. 156.202. EXEMPTIONS. This chapter does not apply to:
1-8 (1) any of the following entities or an employee of
1-9 any of the following entities provided the employee is acting for
1-10 the benefit of the employer:
1-11 (A) a bank, savings bank, or savings and loan
1-12 association, or a subsidiary or an affiliate of a bank, savings
1-13 bank, or savings and loan association;
1-14 (B) a state or federal credit union;
1-15 (C) an insurance company licensed or authorized
1-16 to do business in this state under the Insurance Code;
1-17 (D) a mortgage banker; [or]
1-18 (E) an organization that qualifies for an
1-19 exemption from state franchise and sales tax as a 501(c)(3)
1-20 organization; or
1-21 (F) a Farm Credit System institution;
1-22 (2) an individual who makes a mortgage loan from the
1-23 individual's own funds to a spouse, former spouse, or persons in
1-24 the lineal line of consanguinity of the individual lending the
1-25 money;
2-1 (3) an owner of real property who makes a mortgage
2-2 loan to a purchaser of the property for all or part of the purchase
2-3 price of the real estate against which the mortgage is secured; or
2-4 (4) an individual who:
2-5 (A) makes a mortgage loan from the individual's
2-6 own funds;
2-7 (B) is not an authorized lender under Chapter
2-8 342, Finance Code; and
2-9 (C) does not regularly engage in the business of
2-10 making or brokering mortgage loans.
2-11 SECTION 2. Not later than October 1, 2001, the savings and
2-12 loan commissioner shall reimburse an employee of a Farm Credit
2-13 System institution who on the effective date of this Act holds a
2-14 license issued under Chapter 156, Finance Code, the amount of any
2-15 licensing fee, renewal fee, or recovery fund fee paid by the
2-16 employee under that chapter that is attributable to the period
2-17 beginning on the effective date of this Act and ending on the
2-18 expiration date of the employee's license.
2-19 SECTION 3. This Act takes effect September 1, 2001.