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A BILL TO BE ENTITLED
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AN ACT
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relating to exemptions from the Residential Mortgage Loan Company |
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Licensing and Registration Act. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 156.2012(b), Finance Code, is amended to |
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read as follows: |
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(b) To be eligible to register as a registered financial |
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services company, a person must: |
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(1) be a depository institution exempt from this |
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chapter under Section 156.202(a-1)(5)(A) [156.202(a-1)(4)(A)] and |
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chartered and regulated by the Office of the Comptroller of the |
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Currency, or be a subsidiary of the institution; |
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(2) provide a business plan satisfactory to the |
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commissioner that sets forth the person's plan to: |
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(A) provide education to its sponsored |
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residential mortgage loan originators; |
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(B) handle consumer complaints relating to its |
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sponsored residential mortgage loan originators; and |
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(C) supervise the residential mortgage loan |
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origination activities of its sponsored residential mortgage loan |
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originators; |
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(3) pay a registration fee in an amount not to exceed |
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$500; |
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(4) designate an officer of the person to be |
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responsible for the activities of its sponsored residential |
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mortgage loan originators; |
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(5) submit a completed application through the |
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Nationwide Mortgage Licensing System and Registry together with the |
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applicable fee required by Subdivision (3) or Subsection (c); |
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(6) obtain preapproval from the commissioner that the |
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person meets the eligibility requirements for registration as a |
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financial services company; and |
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(7) not be in violation of this chapter, a rule adopted |
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under this chapter, or any order previously issued by the |
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commissioner to the applicant. |
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SECTION 2. Section 156.202(a-1), Finance Code, is amended |
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to read as follows: |
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(a-1) The following entities are exempt from this chapter: |
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(1) a nonprofit organization: |
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(A) providing self-help housing that originates |
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zero interest residential mortgage loans for borrowers who have |
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provided part of the labor to construct the dwelling securing the |
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loan; or |
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(B) that has designation as a Section 501(c)(3) |
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organization by the Internal Revenue Service and originates |
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residential mortgage loans for borrowers who, through a self-help |
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program, have provided at least 200 labor hours or 65 percent of the |
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labor to construct the dwelling securing the loan; |
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(2) a mortgage banker registered under Chapter 157; |
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(3) any owner of residential real estate who in any |
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12-consecutive-month period makes no more than five residential |
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mortgage loans to purchasers of the residential real estate |
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[property] for all or part of the purchase price of the residential |
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real estate against which the mortgage is secured; [and] |
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(4) any owner of residential real estate who makes |
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residential mortgage loans for the residential real estate on which |
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no dwelling is constructed to purchasers of the residential real |
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estate for all or part of the purchase price of the residential real |
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estate against which the mortgage is secured, provided that the |
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loans are originated through a licensed and sponsored residential |
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mortgage loan originator; and |
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(5) an entity that is: |
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(A) a depository institution; |
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(B) a subsidiary of a depository institution that |
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is: |
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(i) owned and controlled by the depository |
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institution; and |
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(ii) regulated by a federal banking agency; |
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or |
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(C) an institution regulated by the Farm Credit |
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Administration. |
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SECTION 3. This Act takes effect September 1, 2017. |