SRC-AMY S.B. 1577 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1577
By: Carona
Business & Commerce
4/5/2003
As Filed


DIGEST AND PURPOSE 

Currently, the Mortgage Broker License Act contains various requirements
related to mortgage broker license and loan officer license eligibility.
As proposed, S.B. 1577 provides additional requirements to becoming an
eligible mortgage broker or loan officer, including not having been
convicted of, found guilty of, or pled guilty or nolo contendre to, placed
on probation for, or granted deferred adjudication for a criminal offense
that the savings and loan commissioner (commissioner) determines directly
relates to the occupation of a mortgage broker, and convincing the
commissioner that the applicant is honest and trustworthy.  

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 156.204(a) and (c), Finance Code, as follows:

(a) Requires a person, to be eligible to be licensed as a mortgage broker,
to not have been convicted of, found guilty of, or pled guilty or nolo
contendre to, placed on probation for, or granted deferred adjudication
for a criminal offense that the savings and loan commissioner
(commissioner) determines directly relates to the occupation of a mortgage
broker as specified with respect to criminal convictions in, rather than
under, Chapter 53 (Consequences of Criminal Conviction), Occupations Code;
to satisfy the commissioner of the individual's moral character, including
honesty, trustworthiness, and integrity; and to not be in valuation of an
order previously issued by the commissioner to the individual, or in
violation of a provision of this chapter or a rule promulgated under this
chapter. 

(c) Makes conforming changes.

SECTION 2.  Amends Sections 156.208(a) and (b), Finance Code, to make
conforming changes. 

SECTION 3.  Amends Section 156.303(a), Finance Code,  to authorize the
commissioner to order a disciplinary action against a licensed mortgage
broker or a licensed loan officer when the commissioner has determined,
after a hearing, that the person disregarded an order issued by the
commissioner under this chapter. 

SECTION 4.  Effective date: September 1, 2003.

SECTION 5.  Makes application of this Act prospective.