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A BILL TO BE ENTITLED
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AN ACT
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relating to regulation of persons making certain loans secured by |
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real property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 156.002(10), Finance Code, is amended to |
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read as follows: |
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(10) "Mortgage loan" means a debt against real estate |
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secured by a [first-lien] security interest against one-to-four |
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family residential real estate created by a deed of trust, security |
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deed, or other security instrument. |
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SECTION 2. Section 157.002(3), Finance Code, is amended to |
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read as follows: |
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(3) "Mortgage loan" means a debt secured by a [first] |
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lien on residential real property designed principally for |
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occupancy by one to four families that is created by a deed of |
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trust, security deed, or other security instrument. |
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SECTION 3. (a) Subject to Section 5 of this Act, Subchapter |
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A, Chapter 156, Finance Code, is amended by adding Section 156.0021 |
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to read as follows: |
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Sec. 156.0021. APPLICATION TO CERTAIN TAX LIENS. For the |
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purposes of this chapter, a debt created in connection with |
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transfer of a tax lien under Section 32.06, Tax Code, or in |
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connection with a contract for foreclosure of lien under Section |
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32.065, Tax Code, is considered a mortgage loan. |
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(b) Subject to Section 5 of this Act, Chapter 157, Finance |
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Code, is amended by adding Section 157.0021 to read as follows: |
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Sec. 157.0021. APPLICATION TO CERTAIN TAX LIENS. For the |
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purposes of this chapter, a debt created in connection with |
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transfer of a tax lien under Section 32.06, Tax Code, or in |
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connection with a contract for foreclosure of lien under Section |
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32.065, Tax Code, is considered a mortgage loan. |
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SECTION 4. Section 342.051, Finance Code, is amended by |
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adding Subsection (f) to read as follows: |
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(f) A mortgage broker licensed under Chapter 156 or mortgage |
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banker registered under Chapter 157 is not required to obtain a |
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license under this chapter to make, negotiate, or transact a |
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mortgage loan, as defined by Chapter 156 or 157, as applicable. |
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SECTION 5. If another enactment of the 80th Legislature, |
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Regular Session, 2007, becomes law and grants regulatory |
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jurisdiction to an officer or agency other than the Department of |
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Savings and Mortgage Lending over persons making, negotiating, or |
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transacting a loan in connection with transfer of a tax lien under |
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Section 32.06, Tax Code, or in connection with a contract for |
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foreclosure of lien under Section 32.065, Tax Code, Section 3 of |
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this Act has no effect. |
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SECTION 6. This Act takes effect September 1, 2007. |