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AN ACT
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relating to the temporary authority of certain individuals to |
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engage in business as a residential mortgage loan originator. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 157.012(a), Finance Code, is amended to |
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read as follows: |
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(a) An individual may not act or attempt to act in the |
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capacity of a residential mortgage loan originator unless the |
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individual is exempt under Section 157.0121 or 180.003(b), is |
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acting under the temporary authority described under Section |
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180.0511, or: |
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(1) is licensed under this chapter, sponsored by an |
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appropriate entity, and enrolled with the Nationwide Mortgage |
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Licensing System and Registry as required by Section 180.052; and |
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(2) complies with other applicable requirements of |
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Chapter 180 and rules adopted by the finance commission under that |
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chapter. |
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SECTION 2. Section 180.051(a), Finance Code, is amended to |
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read as follows: |
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(a) Unless exempted by Section 180.003 or acting under the |
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temporary authority described under Section 180.0511, an |
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individual may not engage in business as a residential mortgage |
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loan originator with respect to a dwelling located in this state |
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unless the individual: |
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(1) is licensed to engage in that business under |
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Chapter 156, 157, 342, 347, 348, or 351; and |
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(2) complies with the requirements of this chapter. |
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SECTION 3. Subchapter B, Chapter 180, Finance Code, is |
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amended by adding Section 180.0511 to read as follows: |
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Sec. 180.0511. TEMPORARY AUTHORITY TO ORIGINATE LOANS. |
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(a) A registered mortgage loan originator who does not hold a |
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license issued under a chapter listed in Section 180.051(a)(1) is |
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considered to have temporary authority to act as a residential |
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mortgage loan originator for a period not to exceed 120 days as |
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provided by Subsection (d) if the individual: |
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(1) becomes employed by an entity that is licensed or |
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registered by this state to engage in the business of residential |
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mortgage loan origination in this state; |
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(2) has not had: |
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(A) an application for a residential mortgage |
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loan originator license or other loan originator license required |
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by another jurisdiction to engage in business as a residential |
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mortgage loan originator denied; or |
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(B) a residential mortgage loan originator |
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license or other loan originator license required by another |
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jurisdiction to engage in business as a residential mortgage loan |
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originator revoked or suspended in any governmental jurisdiction; |
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(3) has not been subject to or served with a cease and |
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desist order: |
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(A) in any governmental jurisdiction; or |
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(B) under 12 U.S.C. Section 5113(c); |
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(4) has not been convicted of a misdemeanor or felony |
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that would preclude licensure to engage in business as a |
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residential mortgage loan originator in this state under the |
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chapters listed in Section 180.051(a)(1); |
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(5) has submitted to the appropriate regulatory |
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official the application form prescribed by the regulatory official |
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under Section 180.053 and the information required under Section |
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180.054; and |
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(6) was registered in the Nationwide Mortgage |
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Licensing System and Registry as a loan originator during the |
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one-year period preceding the date on which the individual |
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submitted to the appropriate regulatory official the application |
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form and information required by Subdivision (5). |
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(b) An individual licensed by another state or governmental |
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jurisdiction to engage in mortgage loan origination in that other |
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state or governmental jurisdiction is considered to have temporary |
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authority to act as a residential mortgage loan originator in this |
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state for a period not to exceed 120 days as provided by Subsection |
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(d) if the individual: |
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(1) is employed by an entity that is licensed or |
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registered by this state to engage in the business of residential |
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mortgage loan origination in this state; |
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(2) meets the eligibility requirements provided by |
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Subsections (a)(2), (3), (4), and (5); and |
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(3) held the license issued by another state or |
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governmental jurisdiction to engage in mortgage loan origination |
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during the 30-day period preceding the date on which the individual |
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submitted to the appropriate regulatory official the application |
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form required under Section 180.053 and the information required |
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under Section 180.054. |
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(c) A residential mortgage loan originator licensed by a |
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regulatory official to engage in business as a mortgage loan |
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originator in this state under a chapter listed in Section |
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180.051(a)(1) is considered to have temporary authority to act as a |
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residential mortgage loan originator under a different chapter |
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listed in Section 180.051(a)(1) for a period not to exceed 120 days |
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as provided by Subsection (d) if the individual: |
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(1) is employed by an entity that is licensed or |
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registered by this state to engage in the business of residential |
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mortgage loan origination in this state; |
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(2) meets the eligibility requirements provided by |
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Subsections (a)(2), (3), (4), and (5); and |
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(3) held the license issued by the regulatory official |
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to engage in business as a residential mortgage loan originator |
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during the 30-day period preceding the date on which the individual |
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submitted to the appropriate regulatory official the application |
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form required under Section 180.053 and the information required |
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under Section 180.054. |
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(d) The 120-day period of temporary authority described |
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under this section begins on the date on which the individual |
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submits to the appropriate regulatory official the application form |
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required under Section 180.053 and the information required under |
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Section 180.054 and ends on the earliest of: |
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(1) the date on which the individual withdraws the |
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application; |
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(2) the date on which the regulatory official denies |
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or issues a notice of intent to deny the application; |
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(3) the date on which the regulatory official issues |
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the individual a license; or |
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(4) the 120th day after the date on which the |
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individual submitted the application, if the application is listed |
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on the Nationwide Mortgage Licensing System and Registry as |
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incomplete. |
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(e) A person employing an individual who is considered to |
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have temporary authority to act as a residential mortgage loan |
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originator in this state under this section is subject to the |
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requirements of applicable federal and state laws and to applicable |
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rules and regulations to the same extent as if that individual was a |
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residential mortgage loan originator licensed by this state. |
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(f) An individual who is considered to have temporary |
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authority to act as a residential mortgage loan originator in this |
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state under this section and who engages in residential mortgage |
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loan origination activities is subject to the requirements of |
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applicable federal and state laws and to applicable rules and |
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regulations to the same extent as if that individual was a |
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residential mortgage loan originator licensed by this state. |
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SECTION 4. Section 342.0515(b), Finance Code, is amended to |
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read as follows: |
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(b) Unless exempt under Section 180.003, or acting under the |
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temporary authority described under Section 180.0511, an |
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individual who acts as a residential mortgage loan originator in |
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the making, transacting, or negotiating of a loan subject to this |
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chapter must: |
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(1) be individually licensed to engage in that |
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activity under this chapter; |
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(2) be enrolled with the Nationwide Mortgage Licensing |
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System and Registry as required by Section 180.052; and |
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(3) comply with other applicable requirements of |
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Chapter 180 and rules adopted under that chapter. |
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SECTION 5. Section 347.4515(b), Finance Code, is amended to |
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read as follows: |
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(b) Unless exempt under Section 180.003, or acting under the |
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temporary authority described under Section 180.0511, an |
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individual who acts as a residential mortgage loan originator in |
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the making, transacting, or negotiating of an extension of credit |
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subject to this chapter must: |
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(1) be individually licensed to engage in that |
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activity under this chapter; |
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(2) be enrolled with the Nationwide Mortgage Licensing |
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System and Registry as required by Section 180.052; and |
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(3) comply with other applicable requirements of |
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Chapter 180 and rules adopted under that chapter. |
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SECTION 6. Section 348.5015(b), Finance Code, is amended to |
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read as follows: |
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(b) Unless exempt under Section 180.003, or acting under the |
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temporary authority described under Section 180.0511, an |
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individual who acts as a residential mortgage loan originator in |
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the sale of a motor vehicle to be used as a principal dwelling must: |
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(1) be licensed to engage in that activity under this |
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chapter; |
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(2) be enrolled with the Nationwide Mortgage Licensing |
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System and Registry as required by Section 180.052; and |
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(3) comply with other applicable requirements of |
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Chapter 180 and rules adopted under that chapter. |
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SECTION 7. Section 351.0515(b), Finance Code, is amended to |
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read as follows: |
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(b) Unless exempt under Section 180.003, or acting under the |
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temporary authority described under Section 180.0511, an |
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individual who acts as a residential mortgage loan originator in |
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the making, transacting, or negotiating of a property tax loan for a |
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principal dwelling must: |
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(1) be individually licensed to engage in that |
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activity under this chapter; |
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(2) be enrolled with the Nationwide Mortgage Licensing |
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System and Registry as required by Section 180.052; and |
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(3) comply with other applicable requirements of |
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Chapter 180 and rules adopted under that chapter. |
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SECTION 8. Section 180.0511, Finance Code, as added by this |
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Act, applies only to an application for a residential mortgage loan |
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originator license submitted to the appropriate regulatory |
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official, as defined by Section 180.002, Finance Code, on or after |
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the effective date of this Act. An application for a residential |
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mortgage loan originator license submitted before that date is |
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governed by the law in effect on the date the application was |
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submitted, and the former law is continued in effect for that |
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purpose. |
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SECTION 9. This Act takes effect November 24, 2019. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 2330 passed the Senate on |
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April 17, 2019, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 2330 passed the House on |
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May 22, 2019, by the following vote: Yeas 144, Nays 0, |
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two present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |