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


Senate Research CenterC.S.S.B. 1578
By: Carona
Business & Commerce
4/8/2003
Committee Report (Substituted)


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.  C.S.S.B. 1578 requires prelicense 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 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. 

SECTION 2.  Effective date:  September 1, 2003.

SUMMARY OF COMMITTEE CHANGES

SECTION 1.  Amends As Filed S.B. 1578, Section 156.204(a)(5), Finance
Code, to insert the phrase "a testing company approved by the Finance
Commission"  in place of  "the American Association of Residential
Mortgage Regulators."  Deletes "another comparable test as is approved by
the commissioner." 

SECTION 2.  No changes.