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


Senate Research Center   S.B. 1578
By: Carona
Business & Commerce
4/5/2003
As Filed


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.  As proposed, 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 Section 156.204(a), Finance Code, to require a mortgage
broker to provide the savings and loan commissioner (commissioner) with
satisfactory evidence of having taken and passed a prelicensing test
offered by the American Association of Residential Mortgage Regulators to
demonstrate knowledge of the mortgage industry and the role and
responsibilities of a mortgage broker, or another comparable test as is
approved by the commissioner in addition to other requirements to be
eligible to be licensed as a mortgage broker. 

SECTION 2.  Effective date:  September 1, 2003.