By Carona                                              S.B. No. 585
         77R3075 JMG-D                           
                                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
 2-1     money;
 2-2                 (3)  an owner of real property who makes a mortgage
 2-3     loan to a purchaser of the property for all or part of the purchase
 2-4     price of the real estate against which the mortgage is secured; or
 2-5                 (4)  an individual who:
 2-6                       (A)  makes a mortgage loan from the individual's
 2-7     own funds;
 2-8                       (B)  is not an authorized lender under Chapter
 2-9     342, Finance Code; and
2-10                       (C)  does not regularly engage in the business of
2-11     making or brokering mortgage loans.
2-12           SECTION 2. Not later than October 1, 2001, the savings and
2-13     loan commissioner shall reimburse an employee of a Farm Credit
2-14     System institution who on the effective date of this Act holds a
2-15     license issued under Chapter 156, Finance Code, the amount of any
2-16     licensing fee, renewal fee, or recovery fund fee paid by the
2-17     employee under that chapter that is attributable to the period
2-18     beginning on the effective date of this Act and ending on the
2-19     expiration date of the employee's license.
2-20           SECTION 3. This Act takes effect September 1, 2001.