Texas Senate Bill SB2142

Texas 2009 - 81st Regular

Caption

Relating to amending the Texas Mortgage Banker Registration Act to provide for licensing and regulation of mortgage banker employees who are residential mortgage originators and providing enforcement and penalties.

Impact

The implementation of SB2142 is expected to create a more structured environment for mortgage banking operations in Texas. By necessitating that mortgage loan originators are licensed, the bill aims to protect consumers from potential misconduct by unregulated individuals. This change could lead to a more trustworthy mortgage process, assuring borrowers that they are working with qualified professionals. Additionally, the bill empowers the savings and mortgage lending commissioner to enforce penalties for violations, thus enhancing oversight within the industry.

Summary

SB2142 aims to amend the Texas Mortgage Banker Registration Act, focusing on the licensing and regulation of mortgage banker employees who serve as residential mortgage originators. The bill seeks to enhance the regulatory framework surrounding mortgage lending by ensuring that all individuals acting as loan originators possess the proper licensing. It introduces a series of definitions, rules, and penalties to enforce compliance among mortgage bankers and their employees, thereby promoting transparency and accountability within the mortgage industry in Texas.

Contention

While the bill presents a structured approach to regulating mortgage loan originators, there may be concerns regarding the burden of compliance on smaller mortgage lenders or potential pushback from individuals who may oppose increased regulatory measures. Moreover, the imposition of penalties for unlicensed activities could raise questions about the accessibility of the mortgage profession for new entrants. Supporters would argue that these regulations are necessary for consumer protection, while opponents might view them as unnecessary obstacles to entering the market.