2003S0597-1 03/12/03
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 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; 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.