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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, none of
which is a wrap mortgage loan, to purchasers of the 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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SECTION 1. Section 156.202,
Finance Code, is amended by amending Subsection (a-1) and adding Subsection
(b) 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) subject to Subsection (b), 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
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.
(b) In determining eligibility for an exemption under
Subsection (a-1)(3), two or more owners of residential real estate are
considered a single owner for the purpose of computing the number of
mortgage loans made within the period specified by that subdivision if any
of the owners are affiliates, as defined by Section 1.002(1), Business
Organizations Code, or if any of the owners have substantially common
ownership, as determined by the commissioner. In this subsection,
"owners of residential real estate" include corporations, limited
partnerships, limited liability companies, professional associations,
cooperatives, and real estate investment trusts.
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SECTION 4. Sections
157.0121(b) and (c), Finance Code, are amended to read as follows:
(b)
The following individuals are exempt from this chapter:
(1)
a registered mortgage loan originator when acting for:
(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;
(2)
an individual who offers or negotiates the terms of a residential mortgage
loan with or on behalf of an immediate family member of the individual;
(3)
a licensed attorney who negotiates the terms of a residential mortgage loan
on behalf of a client as an ancillary matter to the attorney's
representation of the client, unless the attorney:
(A)
takes a residential mortgage loan application; and
(B)
offers or negotiates the terms of a residential mortgage loan;
(4)
an individual who offers or negotiates terms of a residential mortgage loan
secured by a dwelling that serves as the individual's residence;
(5)
any owner of residential real estate who in any 12-consecutive-month period
makes no more than five residential mortgage loans, none of which is a
wrap mortgage loan, to purchasers of the property for all or part of
the purchase price of the residential real estate against which the
mortgage is secured; and
(6)
an individual who is exempt as provided by Section 180.003(b).
(c) Employees of the
following entities, when acting for the benefit of those entities, are
exempt from the licensing and other requirements of this chapter applicable
to residential mortgage loan originators:
(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) any owner of residential
real estate who in any 12-consecutive-month period makes no more than five
residential mortgage loans, none of
which is a wrap mortgage loan, to purchasers of the property for
all or part of the purchase price of the residential real estate against
which the mortgage is secured; and
(3) 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 2. Section 157.0121,
Finance Code, is amended by amending Subsection (c) and adding Subsection
(f) to read as follows:
(c) Employees of the
following entities, when acting for the benefit of those entities, are
exempt from the licensing and other requirements of this chapter applicable
to residential mortgage loan originators:
(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) subject to Subsection (f), 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
property for all or part of the purchase price of the residential real
estate against which the mortgage is secured; and
(3) 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.
(f) In determining eligibility for an exemption under
Subsection (c)(2), two or more owners of residential real estate are
considered a single owner for the purpose of computing the number of
mortgage loans made within the period specified by that subdivision if any
of the owners are affiliates, as defined by Section 1.002(1), Business
Organizations Code, or if any of the owners have substantially common
ownership, as determined by the commissioner. In this subsection,
"owners of residential real estate" include corporations, limited
partnerships, limited liability companies, professional associations,
cooperatives, and real estate investment trusts.
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SECTION 6. Section 158.052,
Finance Code, is amended by amending Subsection (a) and adding Subsection
(d) to read as follows:
(a) This chapter does not
require registration by:
(1) a federal or state
depository institution, or a subsidiary or affiliate of a federal or state
depository institution;
(2) a person registered
under Chapter 157;
(3) a person licensed under
Chapter 342 or regulated under Chapter 343, if the person does not act as a
residential mortgage loan servicer servicing first-lien secured loans; or
(4) except as provided by
Subsection (d), a person making a residential mortgage loan with the
person's own funds, or to secure all or a portion of the purchase price of
real property sold by that person.
(d) This chapter applies
to a wrap lender who services a wrap mortgage loan.
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No
equivalent provision.
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SECTION 7. Section 180.002,
Finance Code, is amended by adding Subdivisions (24), (25), and (26) to
read as follows:
(24) "Wrap
borrower" means a person obligated to pay a wrap mortgage loan.
(25) "Wrap
lender" means a person who makes a wrap mortgage loan.
(26) "Wrap mortgage
loan" means a residential mortgage loan:
(A) made to finance the
purchase of residential real estate that will continue to be subject to an
unreleased lien that:
(i) attached to the
residential real estate before the loan was made; and
(ii) secures a debt
incurred by a person other than the wrap borrower that was not paid off at
the time the loan was made; and
(B) obligating the wrap
borrower to the wrap lender for payment of a debt the principal amount of
which includes:
(i) the outstanding
balance of the debt described by Paragraph (A)(ii); and
(ii) any remaining amount
of the purchase price financed by the wrap lender.
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No
equivalent provision.
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SECTION 8. Section
180.003(a), Finance Code, is amended to read as follows:
(a) The following persons
are exempt from this chapter:
(1) a registered mortgage
loan originator when acting for an entity described by Section
180.002(16)(A)(i), (ii), or (iii);
(2) an individual who offers
or negotiates terms of a residential mortgage loan with or on behalf of an
immediate family member of the individual;
(3) a licensed attorney who
negotiates the terms of a residential mortgage loan on behalf of a client as
an ancillary matter to the attorney's representation of the client, unless
the attorney:
(A) takes a residential
mortgage loan application; and
(B) offers or negotiates the
terms of a residential mortgage loan;
(4) an individual who offers
or negotiates terms of a residential mortgage loan secured by a dwelling
that serves as the individual's residence;
(5) an owner of residential
real estate who in any 12-consecutive-month period makes no more than five
residential mortgage loans, none of
which is a wrap mortgage loan, to purchasers of the property for
all or part of the purchase price of the residential real estate against
which the mortgage is secured; and
(6) an owner of a dwelling
who in any 12-consecutive-month period makes no more than five residential
mortgage loans, none of which is a
wrap mortgage loan, to purchasers of the property for all or
part of the purchase price of the dwelling against which the mortgage or
security interest is secured.
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SECTION 3. Section 180.003,
Finance Code, is amended by amending Subsection (a) and adding Subsection
(d) to read as follows:
(a) The following persons
are exempt from this chapter:
(1) a registered mortgage
loan originator when acting for an entity described by Section
180.002(16)(A)(i), (ii), or (iii);
(2) an individual who offers
or negotiates terms of a residential mortgage loan with or on behalf of an
immediate family member of the individual;
(3) a licensed attorney who
negotiates the terms of a residential mortgage loan on behalf of a client
as an ancillary matter to the attorney's representation of the client,
unless the attorney:
(A) takes a residential
mortgage loan application; and
(B) offers or negotiates the
terms of a residential mortgage loan;
(4) an individual who offers
or negotiates terms of a residential mortgage loan secured by a dwelling
that serves as the individual's residence;
(5) subject to Subsection (d), an owner
of residential real estate who in any 12-consecutive-month period makes no
more than five residential mortgage loans to purchasers of the property for
all or part of the purchase price of the residential real estate against
which the mortgage is secured; and
(6) subject to Subsection (d), an owner
of a dwelling who in any 12-consecutive-month period makes no more than
five residential mortgage loans to purchasers of the property for all or
part of the purchase price of the dwelling against which the mortgage or
security interest is secured.
(d) In determining eligibility for an exemption under Subsection
(a)(5) or (6), two or more owners of residential real estate or a dwelling,
as applicable, are considered a single owner for the purpose of computing
the number of mortgage loans made within the period specified by those
subdivisions if any of the owners are affiliates, as defined by Section
1.002(1), Business Organizations Code, or if any of the owners have
substantially common ownership, as determined by the savings and mortgage
lending commissioner.
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