78R11866 RCJ-F


By:  Carona                                                       S.B. No. 1578

Substitute the following for S.B. No. 1578:                                   

By:  Flynn                                                    C.S.S.B. No. 1578


A BILL TO BE ENTITLED
AN ACT
relating to an examination requirement for mortgage broker and loan officer license applicants. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Sections 156.204(a) and (c), Finance Code, are 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 passed an examination, offered by a testing service or company approved by the finance commission, that demonstrates knowledge of: (i) the mortgage industry; and (ii) 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. (c) To be eligible to be licensed as a loan officer 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) designate in the application the name of the mortgage broker sponsoring the loan officer; (4) provide the commissioner with satisfactory evidence that the applicant satisfies one of the following: (A) the person meets one of the requirements described by Subsection (a)(4); (B) the person has successfully completed 15 hours of education courses approved by the commissioner under this section; (C) the person has 18 months of experience as a loan officer 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; or (D) for applications received prior to January 1, 2000, the mortgage broker that will sponsor the applicant provides a certification under oath that the applicant has been provided necessary and appropriate education and training regarding all applicable state and federal law and regulations relating to mortgage loans; [and] (5) not have been convicted of a criminal offense that the commissioner determines directly relates to the occupation of a loan officer under Chapter 53, Occupations Code; and (6) provide the commissioner with satisfactory evidence of having passed an examination, offered by a testing service or company approved by the finance commission, that demonstrates knowledge of: (A) the mortgage industry; and (B) the role and responsibilities of a loan officer. SECTION 2. This Act takes effect September 1, 2003, and applies only to an application for a license that is made on or after that date. An application for a license made before the effective date of this Act is governed by the law in effect at the time the application was made, and the former law is continued in effect for that purpose.