SRC-LBB S.B. 1578 78(R)BILL ANALYSIS


Senate Research CenterS.B. 1578
By: Carona
Business & Commerce
7/8/2003
Enrolled


DIGEST AND PURPOSE 

Currently, there is no examination requirement to assure that persons
entering the mortgage brokering industry have any level of knowledge or
proficiency.  S.B. 1578 requires pre-license testing for mortgage broker
applicants. 

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 mortgage broker to provide the savings and loan
commissioner (commissioner) with satisfactory evidence of having taken and
passed a prelicensing test offered by a testing company approved by the
Finance Commission to demonstrate knowledge of the mortgage industry and
the role and responsibilities of a mortgage broker, in addition to the
other requirements to be eligible to be licensed as a mortgage broker. 

(c)  Requires a person to meet certain requirements to be eligible to be
licensed as a loan officer. 

SECTION 2.  Effective date:  September 1, 2003.
            Makes application of this Act prospective.