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SECTION 1. Section
156.2012(b), Finance Code, is amended to read as follows:
(b) To be eligible to
register as a registered financial services company, a person must:
(1) be a depository
institution exempt from this chapter under Section 156.202(a-1)(5)(A)
[156.202(a-1)(4)(A)] and chartered and regulated by the Office of
the Comptroller of the Currency, or be a subsidiary of the institution;
(2) provide a business plan
satisfactory to the commissioner that sets forth the person's plan to:
(A) provide education to its
sponsored residential mortgage loan originators;
(B) handle consumer
complaints relating to its sponsored residential mortgage loan originators;
and
(C) supervise the
residential mortgage loan origination activities of its sponsored
residential mortgage loan originators;
(3) pay a registration fee
in an amount not to exceed $500;
(4) designate an officer of
the person to be responsible for the activities of its sponsored
residential mortgage loan originators;
(5) submit a completed
application through the Nationwide Mortgage Licensing System and Registry
together with the applicable fee required by Subdivision (3) or Subsection
(c);
(6) obtain preapproval from
the commissioner that the person meets the eligibility requirements for
registration as a financial services company; and
(7) not be in violation of
this chapter, a rule adopted under this chapter, or any order previously
issued by the commissioner to the applicant.
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No
equivalent provision.
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No
equivalent provision.
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SECTION 1. Section 156.002,
Finance Code, is amended by adding Subdivision (8-b) and amending
Subdivisions (10-b) and (13) to read as follows:
(8-b) "Mortgage lot
lender company" means a corporation, company, partnership, or sole
proprietorship that engages in the business of residential mortgage loan
origination on residential real estate located in this state on which no
dwelling is constructed to purchasers of the residential real estate for
all or part of the purchase price of the residential real estate against
which the mortgage is secured.
(10-b) "Qualifying
individual" means an individual who is:
(A) except as provided by
Section 156.2045(a)(3), licensed under Chapter 157 as a residential
mortgage loan originator; and
(B) designated by a
residential mortgage loan company as the company's representative.
(13) "Residential
mortgage loan company" means a person, other than an individual, that
engages in the business of residential mortgage loan origination on residential
real estate located in this state. The term includes a credit union
subsidiary organization, auxiliary mortgage loan activity company, mortgage
company, independent contractor loan processor or underwriter company, mortgage
lot lender company, and financial services company.
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No
equivalent provision.
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SECTION 2. Section 156.201,
Finance Code, is amended to read as follows:
Sec. 156.201. LICENSES
REQUIRED. (a) A person may not act in the capacity of, engage in the
business of, or advertise or hold that person out as engaging in or
conducting the business of a residential mortgage loan company in this
state unless the person holds an active residential mortgage loan company
license, is registered under Section 156.2012, is registered under
Section 156.2045, or is exempt under Section 156.202.
(c) Each residential
mortgage loan company and the company's qualifying individual are [licensed
under Chapter 157 is] responsible to the commissioner and members of
the public for any act or conduct performed by the residential mortgage
loan originator sponsored by or acting for the residential mortgage loan
company in connection with:
(1) the origination of a
residential mortgage loan; or
(2) a transaction that is
related to the origination of a residential mortgage loan in which the
qualifying individual knew or should have known of the transaction.
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SECTION 2. Section 156.202(a-1),
Finance Code, is amended to read as follows:
(a-1) The following entities
are exempt from this chapter:
(1) a nonprofit
organization:
(A) providing self-help
housing that originates zero interest residential mortgage loans for
borrowers who have provided part of the labor to construct the dwelling
securing the loan; or
(B) that has designation as
a Section 501(c)(3) organization by the Internal Revenue Service and
originates residential mortgage loans for borrowers who, through a
self-help program, have provided at least 200 labor hours or 65 percent of
the labor to construct the dwelling securing the loan;
(2) a mortgage banker
registered under Chapter 157;
(3) any owner of residential
real estate who in any 12-consecutive-month period makes no more than five
residential mortgage loans to purchasers of the residential real estate
[property] for all or part of the purchase price of the residential
real estate against which the mortgage is secured; [and]
(4)
any owner of residential real estate who makes residential mortgage
loans for the residential real estate on which no dwelling is constructed
to purchasers of the residential real estate for all or part of the
purchase price of the residential real estate against which the mortgage is
secured, provided that the loans are originated through a licensed and
sponsored residential mortgage loan originator; and
(5) an entity that
is:
(A) a depository
institution;
(B) a subsidiary of a
depository institution that is:
(i) owned and controlled by
the depository institution; and
(ii) regulated by a federal
banking agency; or
(C) an institution regulated
by the Farm Credit Administration.
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SECTION 3. Section
156.202(a-1), Finance Code, is amended to read as follows:
(a-1) The following entities
are exempt from this chapter:
(1) a nonprofit
organization:
(A) providing self-help
housing that originates zero interest residential mortgage loans for
borrowers who have provided part of the labor to construct the dwelling
securing the loan; or
(B) that has designation as
a Section 501(c)(3) organization by the Internal Revenue Service and
originates residential mortgage loans for borrowers who, through a
self-help program, have provided at least 200 labor hours or 65 percent of
the labor to construct the dwelling securing the loan;
(2) a mortgage banker
registered under Chapter 157;
(3) any owner of residential
real estate who in any 12-consecutive-month period makes no more than five
residential mortgage loans to purchasers of the residential real estate
[property] for all or part of the purchase price of the residential
real estate against which the mortgage is secured; and
(4) an entity that is:
(A) a depository
institution;
(B) a subsidiary of a
depository institution that is:
(i) owned and controlled by
the depository institution; and
(ii) regulated by a federal
banking agency; or
(C) an institution regulated
by the Farm Credit Administration.
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No
equivalent provision.
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SECTION 5. Subchapter C,
Chapter 156, Finance Code, is amended by adding Section 156.2045 to read as
follows:
Sec. 156.2045.
QUALIFICATIONS AND REQUIREMENTS FOR REGISTRATION: MORTGAGE LOT LENDER
COMPANY. (a) To be registered as a mortgage lot lender company, an
applicant must:
(1) submit a completed
application together with the payment of applicable fees through the
Nationwide Mortgage Licensing System and Registry;
(2) designate control
persons for the company through the Nationwide Mortgage Licensing System
and Registry;
(3) designate an
individual as the company's qualifying individual who is either:
(A) an owner, officer, or
partner of the company; or
(B) a residential
mortgage loan originator who is licensed under Chapter 157;
(4) properly sponsor one
or more residential mortgage loan originators who are licensed under
Chapter 157;
(5) not be in violation
of this chapter, a rule adopted under this chapter, or any order previously
issued by the commissioner to the applicant;
(6) have the company name
or assumed name properly filed with either the secretary of state or the
appropriate county clerk's office;
(7) maintain a physical
office in this state; and
(8) provide any other
information required by the commissioner.
(b) If the commissioner
determines that a person has met the requirements of Subsection (a), the
commissioner shall issue a registration to the person. The registration is
valid for one year, expires on December 31 of each year, and must be
renewed annually by meeting the requirements under Subsection (a) and
paying a renewal fee in an amount not to exceed $500. A person must renew
an expired registration in the manner determined by the commissioner.
(c) A registered mortgage
lot lender company is subject to Subchapters D and E as if the company were
licensed as a residential mortgage loan company.
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No
equivalent provision.
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SECTION 6. As soon as
practicable after the effective date of this Act, the Finance Commission of
Texas shall adopt the rules necessary to implement the changes in law made
by this Act, and the savings and mortgage lending commissioner shall begin
registering persons as mortgage lot lender companies as required by Section
156.2045, Finance Code, as added by this Act.
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