Relating to residential mortgage loans, including the financing of residential real estate purchases by means of a wrap mortgage loan; providing licensing requirements; authorizing an administrative penalty.
Impact
The bill modifies the Finance Code by amending existing provisions and introducing provisions specifically relating to wrap mortgage loans. It exempts certain entities from licensing requirements while setting specific criteria for what constitutes a wrap mortgage loan, ensuring that borrowers are informed of their obligations and rights. The legislation mandates that any necessary disclosures regarding mortgage loans be provided in sensitive language and establishes a framework for disputes related to violations of the bill's provisions. As a result, this bill is poised to reshape the landscape of residential mortgage lending in Texas, particularly for transactions involving wrap mortgages.
Summary
SB1994, titled 'An Act Relating to Residential Mortgage Loans', introduces significant changes in the regulation of wrap mortgage loans in Texas. The bill sets forth licensing requirements for individuals and entities that originate or make these types of loans, thereby enhancing oversight in the mortgage lending sector. Furthermore, it aims to protect consumers involved in residential real estate transactions by ensuring that those who provide wrap mortgage loans are properly licensed, thereby reducing potential fraud and mismanagement in the industry. The act indicates a clear intention to tighten regulations and improve consumer safety in the mortgage sector.
Sentiment
Overall, the sentiment surrounding SB1994 appears to be positive, as it is seen as a step towards increased regulation and consumer protection in the mortgages market. Supporters argue that the bill provides necessary oversight that can help prevent consumer exploitation and enhance the integrity of the lending process. However, there may be concerns from some stakeholders, including smaller lenders or entities that may be subject to more stringent regulatory requirements, who might view the licensing requirements as burdensome and potentially stifling to business.
Contention
Notably, there are points of contention among various stakeholders regarding the implications of stricter licensing and regulatory measures. Proponents of the bill contend that such measures are crucial for protecting consumers and maintaining the integrity of the mortgage lending process. Critics, however, fear that the additional regulation could inadvertently limit access to mortgage finance, particularly for low-income borrowers or those with nontraditional financing needs. As the bill proceeds through the legislative process, these discussions around its impact and reach may influence any amendments made to the proposed legislation.
Relating to the regulation and voluntary licensing of reroofing contractors by the Texas Department of Licensing and Regulation; providing administrative and civil penalties; authorizing fees.
Relating to the regulation of money services businesses; creating a criminal offense; creating administrative penalties; authorizing the imposition of a fee.
Relating to the prohibition of certain discrimination based on sexual orientation or gender identity or expression; providing an administrative penalty.
Relating to residential mortgage loans, including the financing of residential real estate purchases by means of a wrap mortgage loan; providing licensing and registration requirements; authorizing an administrative penalty.
Relating to residential mortgage loans, including the financing of residential real estate purchases by means of a wrap mortgage loan; providing licensing requirements; authorizing an administrative penalty.
Relating to residential mortgage loans, including the financing of residential real estate purchases by means of a wrap mortgage loan; providing licensing and registration requirements; authorizing an administrative penalty.
Relating to residential mortgage loans, including the financing of residential real estate purchases by means of a wrap mortgage loan; providing licensing and registration requirements; authorizing an administrative penalty.
Relating to the regulation of residential mortgage loan originators, residential mortgage loan companies, mortgage bankers, and residential mortgage loan servicers under the jurisdiction of the Department of Savings and Mortgage Lending; changing a fee.
Relating to the regulation of residential mortgage loan originators, residential mortgage loan companies, mortgage bankers, and residential mortgage loan servicers under the jurisdiction of the Department of Savings and Mortgage Lending; changing a fee.