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By:  Carona                                                       S.B. No. 1578


A BILL TO BE ENTITLED

AN ACT

relating to a prelicense test requirement for mortgage broker 
applicants.   
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subsection (a), Section 156.204, Finance Code, 
is amended to read as follows:
	(a)  To be eligible to be licensed as a mortgage broker a 
person must:       
		(1)  be an individual who is at least 18 years of age;                        
		(2)  be a citizen of the United States or a lawfully 
admitted alien;        
		(3)  maintain a physical office in this state and 
designate that office in the application;
		(4)  provide the commissioner with satisfactory 
evidence that the applicant satisfies one of the following:
			(A)  the person has received a bachelor's degree 
in an area relating to finance, banking, or business administration 
from an accredited college or university and has 18 months of 
experience in the mortgage or lending field as evidenced by 
documentary proof of full-time employment as a mortgage broker or 
loan officer with a mortgage broker or a person exempt under Section 
156.202;
			(B)  the person is licensed in this state as:                                
				(i)  an active real estate broker under The 
Real Estate License Act (Article 6573a, Vernon's Texas Civil 
Statutes);
				(ii)  an active attorney; or                                                
				(iii)  a local recording agent or insurance 
solicitor or agent for a legal reserve life insurance company under 
Chapter 21, Insurance Code, or holds an equivalent license under 
Chapter 21, Insurance Code; or 
			(C)  the person has three years of experience in 
the mortgage lending field as evidenced by documentary proof of 
full-time employment as a loan officer with a mortgage broker or a 
person exempt under Section 156.202;
		(5)  provide the commissioner with satisfactory 
[demonstrate] evidence of:
			(A)  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; and
			(B)  compliance with the financial requirements 
of this chapter; and
		(6)  not have been convicted of a criminal offense that 
the commissioner determines directly relates to the occupation of a 
mortgage broker under Chapter 53, Occupations Code.
	SECTION 2.  This Act takes effect September 1, 2003.