By:  Carona                                                       S.B. No. 988
	(In the Senate - Filed March 4, 2005; March 14, 2005, read 
first time and referred to Committee on Business and Commerce; 
March 31, 2005, reported adversely, with favorable Committee 
Substitute by the following vote:  Yeas 9, Nays 0; March 31, 2005, 
sent to printer.)


COMMITTEE SUBSTITUTE FOR S.B. No. 988                                    By:  Carona


A BILL TO BE ENTITLED

AN ACT


relating to education courses required for a mortgage broker or 
loan officer license.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 156.204, Finance Code, is amended by 
reenacting and amending Subsection (c), as amended by Chapters 170 
and 171, Acts of the 78th Legislature, Regular Session, 2003, and 
adding Subsection (e) to read as follows:
	(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 30 [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;
		(5)  not have 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;
		(6)  satisfy the commissioner as to the individual's 
good moral character, including the individual's honesty, 
trustworthiness, and integrity; [and]
		(7) [(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; and[.]
		(8) [(7)]  not be in violation of this chapter, a rule 
adopted under this chapter, or any order previously issued to the 
individual by the commissioner.
	(e)  The education courses required for a loan officer 
license under Subsection (c)(4)(B) must cover ethics, the Real 
Estate Settlement Procedures Act of 1974 (12 U.S.C. Section 2601 et 
seq.), the Truth in Lending Act (15 U.S.C. Section 1601 et seq.), 
the Equal Credit Opportunity Act (15 U.S.C. Section 1691 et seq.), 
and the provisions of this chapter.
	SECTION 2.  Subsection (g), Section 156.208, Finance Code, 
is amended to read as follows:
	(g)  The finance commission shall adopt rules related to the 
approval of courses for continuing education credit under this 
section that provide for the acceptance of continuing education 
courses that are related to finance, financial consulting, lending, 
real estate contracts, discrimination laws, deceptive trade 
practices, real property conveyances, and other topics that are 
relevant to mortgage brokers and that are acceptable as continuing 
education courses to other professional licensing agencies or 
related trade associations.  The finance commission may approve any 
education course approved by the Texas Real Estate Commission, the 
Mortgage Bankers Association of America, or the National 
Association of Mortgage Brokers so long as the subject matter of 
such courses specifically promotes or furthers the purposes of this 
chapter and relates to residential mortgage lending.
	SECTION 3.  (a)  The changes in law made by this Act to 
Section 156.204, Finance Code, apply only to an individual who 
applies for a license as a loan officer on or after September 1, 
2005.  An individual who applies for a license before September 1, 
2005, must comply with the requirements in effect on the date the 
application was submitted, and the former law is continued in 
effect for that purpose.
	(b)  The changes in law made by this Act to Section 156.208, 
Finance Code, apply only to an individual who applies to renew the 
individual's license on or after September 1, 2005.  An individual 
who applies to renew a license before September 1, 2005, must 
comply with the requirements in effect on the date the application 
was submitted, and the former law is continued in effect for that 
purpose.
	SECTION 4.  This Act takes effect September 1, 2005.                           



* * * * *