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S.B. No. 324
AN ACT
relating to the exemption of certain persons from regulation as a
credit services organization or as mortgage brokers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 156.202, Finance Code, is amended to
read as follows:
Sec. 156.202. EXEMPTIONS. This chapter does not apply to:
(1) any of the following entities or an employee of any
of the following entities provided the employee is acting for the
benefit of the employer:
(A) a bank, savings bank, or savings and loan
association, or a subsidiary or an affiliate of a bank, savings
bank, or savings and loan association;
(B) a state or federal credit union;
(C) an insurance company licensed or authorized
to do business in this state under the Insurance Code;
(D) a mortgage banker;
(E) an organization that qualifies for an
exemption from state franchise and sales tax as a 501(c)(3)
organization; [or]
(F) a Farm Credit System institution; or
(G) a political subdivision of this state
involved in affordable home ownership programs;
(2) an individual who makes a mortgage loan from the
individual's own funds to a spouse, former spouse, or persons in the
lineal line of consanguinity of the individual lending the money;
(3) an owner of real property who makes a mortgage loan
to a purchaser of the property for all or part of the purchase price
of the real estate against which the mortgage is secured; or
(4) an individual who:
(A) makes a mortgage loan from the individual's
own funds;
(B) is not an authorized lender under Chapter
342, Finance Code; and
(C) does not regularly engage in the business of
making or brokering mortgage loans.
SECTION 2. Subsection (a), Section 393.002, Finance Code,
is amended to read as follows:
(a) This chapter does not apply to:
(1) a person:
(A) authorized to make a loan or grant an
extension of consumer credit under the laws of this state or the
United States; and
(B) subject to regulation and supervision by this
state or the United States;
(2) a lender approved by the United States secretary
of housing and urban development for participation in a mortgage
insurance program under the National Housing Act (12 U.S.C. Section
1701 et seq.);
(3) a bank or savings association the deposits or
accounts of which are eligible to be insured by the Federal Deposit
Insurance Corporation or a subsidiary of the bank or association;
(4) a credit union doing business in this state;
(5) a nonprofit organization exempt from taxation
under Section 501(c)(3), Internal Revenue Code of 1986 (26 U.S.C.
Section 501(c)(3));
(6) a real estate broker or salesman licensed under
The Real Estate License Act (Article 6573a, Vernon's Texas Civil
Statutes) who is acting within the course and scope of that license;
(7) an individual licensed to practice law in this
state who is acting within the course and scope of the individual's
practice as an attorney;
(8) a broker-dealer registered with the Securities and
Exchange Commission or the Commodity Futures Trading Commission
acting within the course and scope of that regulation;
(9) a consumer reporting agency;
(10) a person whose primary business is making loans
secured by liens on real property; [or]
(11) a mortgage broker or loan officer licensed under
Chapter 156, Finance Code, who is acting within the course and scope
of that license; or
(12) an electronic return originator who:
(A) is an authorized Internal Revenue Service
e-file provider; and
(B) makes, negotiates, arranges for, or
transacts a loan that is based on a person's federal income tax
refund on behalf of a bank, savings bank, savings and loan
association, or credit union.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2003.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 324 passed the Senate on
March 13, 2003, by the following vote: Yeas 30, Nays 0; and that
the Senate concurred in House amendment on May 9, 2003, by a
viva-voce vote.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 324 passed the House, with
amendment, on May 1, 2003, by a non-record vote.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor