SRC-AMY, TJG S.B. 252 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 252
78R2558 ATP-FBy: Staples
Business & Commerce
4/5/2003
As Filed


DIGEST AND PURPOSE 

Under the Mortgage Broker License Act (MBLA), a person may not act in the
capacity of, engage in the business of, or advertise or hold that person
out as engaging in or conducting the business of a mortgage broker in this
state unless the person holds an active mortgage broker license.
Currently, mortgage bankers are exempt from the MBLA, and not subject to
state regulation or oversight.  As proposed, S.B. 252 removes the mortgage
banker exemption. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Sections 156.002(5) and (9), Finance Code, to delete
existing text referring to mortgage bankers relating to certain exemptions
from the regulation of mortgage brokers.  Makes conforming and
nonsubstantive changes.  

SECTION 2.  Amends Section 156.202, Finance Code, to make conforming
changes relating to the deletion of existing text relating to mortgage
bankers. 

SECTION 3.  Repealer: Section 156.002(8), Finance Code (Definition of a
Mortgage Banker). 

SECTION 4.  Effective date: September 1, 2003.