79R1467 DWS-D

By:  Raymond                                                      H.B. No. 2349



A BILL TO BE ENTITLED

AN ACT

relating to registration of a loan officer employed by a mortgage 
banker.   
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 157.003(c), Finance Code, is amended to 
read as follows: 
	(c)  Except as provided by Section 157.012, an [An] employee 
of a mortgage banker is not required to register under this chapter.
	SECTION 2.  Chapter 157, Finance Code, is amended by adding 
Section 157.012 to read as follows:
	Sec. 157.012.  REGISTRATION OF LOAN OFFICERS.  (a)  In this 
section, "loan officer" means an employee of a mortgage banker who 
takes an application to originate a mortgage loan.
	(b)  A person must be registered under this section to act or 
attempt to act as a loan officer.  To register, the person must file 
with the commissioner a statement containing the person's name, 
each mortgage banker for which the person will act as a loan 
officer, and any other information the commissioner requires.  The 
commissioner shall register the applicant if the commissioner 
determines the applicant is eligible for registration.  The 
registration is valid until withdrawn or revoked.  A loan officer 
registered under this section shall update any information in the 
registration statement not later than the 30th day after the date 
the information changes.  The commissioner may charge a loan 
officer a reasonable fee to cover the costs of filing the 
registration statement and administering this section.
	(c)  A person is not eligible to register as a loan officer if 
the person:
		(1)  has been convicted of a criminal offense that the 
commissioner determines directly relates to the occupation of a 
loan officer as provided by Chapter 53, Occupations Code; or
		(2)  has had a license under Chapter 156 or a 
registration under this chapter revoked.
	(d)  On receipt of a statement under Subsection (a), the 
commissioner shall conduct a criminal background check of the 
applicant in the same manner and subject to the same powers and 
requirements as provided under Section 156.206 for an applicant for 
a loan officer license under Chapter 156.
	(e)  A loan officer may withdraw the loan officer's 
registration at any time.  The commissioner may revoke the 
registration of a loan officer if the loan officer fails to pay a 
fee required by this section or if the commissioner concludes that 
the loan officer has engaged in an intentional course of conduct to 
violate federal or state law or has engaged in an intentional course 
of conduct that constitutes improper, fraudulent, or dishonest 
dealings.  Revocation of a loan officer's registration is subject 
to the same procedures applicable to revocation of registration of 
a mortgage banker under Section 157.009.
	SECTION 3.  This Act takes effect January 1, 2006.