Texas 2017 - 85th Regular

Texas Senate Bill SB1994

Caption

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.

Companion Bills

No companion bills found.

Previously Filed As

TX SB2426

Relating to an exemption from residential mortgage loan originator licensing requirements.

TX HB219

Relating to the release of a deed of trust or other contract lien securing a home loan after payoff by mortgagor.

TX HB3890

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.

TX SB895

Relating to the regulation of money services businesses; creating a criminal offense; creating administrative penalties; authorizing the imposition of a fee.

TX HB2632

Relating to false, misleading, or deceptive advertising made in connection with a reverse mortgage loan agreement.

TX HB256

Relating to the prohibition of certain discrimination based on sexual orientation or gender identity; providing an administrative penalty.

TX HB3583

Relating to the licensing and regulation of youth sports programs; providing civil and administrative penalties; authorizing fees.

TX HB850

Relating to the prohibition of certain discrimination based on sexual orientation or gender identity or expression; providing an administrative penalty.

TX HB2367

Relating to the regulation of residential amenity rentals by a political subdivision; authorizing a fee; authorizing a civil penalty.

TX SB1466

Relating to the regulation of residential amenity rentals by a political subdivision; authorizing a fee; authorizing a civil penalty.

Similar Bills

TX SB42

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.

TX HB90

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.

TX HB216

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.

TX SB43

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.

TX SB17

Relating to the regulation of residential mortgage loan servicers; providing an administrative penalty.

TX SB1004

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.

TX HB1601

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.

TX HB10

Relating to the regulation of residential mortgage loan originators; providing a penalty.