By: RodrÃguez S.B. No. 1203
(Pickett)
A BILL TO BE ENTITLED
AN ACT
relating to exemptions from the applicability of the Texas Secure
and Fair Enforcement for Mortgage Licensing Act of 2009 and other
laws applicable to residential mortgage loan originators.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 156.202(a-1), Finance Code, is amended
to read as follows:
(a-1) The following entities are exempt from this chapter:
(1) a nonprofit organization:
(A) providing self-help housing that originates
zero interest residential mortgage loans for borrowers who have
provided part of the labor to construct the dwelling securing the
loan; or
(B) that has designation as a Section 501(c)(3)
organization by the Internal Revenue Service and originates
residential mortgage loans for borrowers who, through a self-help
program, have provided at least 200 labor hours or 65 percent of the
labor to construct the dwelling securing the loan;
(2) a mortgage banker registered under Chapter 157;
(3) any owner of residential real estate who in any
12-consecutive-month period makes no more than five residential
mortgage loans to purchasers of the property for all or part of the
purchase price of the residential real estate against which the
mortgage is secured; and
(4) an entity that is:
(A) a depository institution;
(B) a subsidiary of a depository institution that
is:
(i) owned and controlled by the depository
institution; and
(ii) regulated by a federal banking agency;
or
(C) an institution regulated by the Farm Credit
Administration.
SECTION 2. Section 157.0121(c), Finance Code, is amended to
read as follows:
(c) Employees of the following entities, when acting for the
benefit of those entities, are exempt from the licensing and other
requirements of this chapter applicable to residential mortgage
loan originators:
(1) a nonprofit organization:
(A) providing self-help housing that originates
zero interest residential mortgage loans for borrowers who have
provided part of the labor to construct the dwelling securing the
loan; or
(B) that has designation as a Section 501(c)(3)
organization by the Internal Revenue Service and originates
residential mortgage loans for borrowers who, through a self-help
program, have provided at least 200 labor hours or 65 percent of the
labor to construct the dwelling securing the loan;
(2) any owner of residential real estate who in any
12-consecutive-month period makes no more than five residential
mortgage loans to purchasers of the property for all or part of the
purchase price of the residential real estate against which the
mortgage is secured; and
(3) an entity that is:
(A) a depository institution;
(B) a subsidiary of a depository institution that
is:
(i) owned and controlled by the depository
institution; and
(ii) regulated by a federal banking agency;
or
(C) an institution regulated by the Farm Credit
Administration.
SECTION 3. Section 180.003(a), Finance Code, is amended to
read as follows:
(a) The following persons are exempt from this chapter:
(1) a registered mortgage loan originator when acting
for an entity described by Section 180.002(16)(A)(i), (ii), or
(iii);
(2) an individual who offers or negotiates terms of a
residential mortgage loan with or on behalf of an immediate family
member of the individual;
(3) a licensed attorney who negotiates the terms of a
residential mortgage loan on behalf of a client as an ancillary
matter to the attorney's representation of the client, unless the
attorney:
(A) takes a residential mortgage loan
application; and
(B) offers or negotiates the terms of a
residential mortgage loan;
(4) an individual who offers or negotiates terms of a
residential mortgage loan secured by a dwelling that serves as the
individual's residence;
(5) [a nonprofit organization providing self-help
housing that originates zero interest residential mortgage loans
for borrowers who have provided part of the labor to construct the
dwelling securing the loan;
[(6)] an owner of residential real estate who in any
12-consecutive-month period makes no more than five residential
mortgage loans to purchasers of the property for all or part of the
purchase price of the residential real estate against which the
mortgage is secured; and
(6) [(7)] an owner of a dwelling who in any
12-consecutive-month period makes no more than five residential
mortgage loans to purchasers of the property for all or part of the
purchase price of the dwelling against which the mortgage or
security interest is secured.
SECTION 4. The provisions of this Act or the applications of
those provisions are severable as provided by Section 311.032(c),
Government Code. If the director of the Consumer Financial
Protection Bureau determines that any provision of Sections 1
through 3 of this Act fails to meet the requirements of the federal
Secure and Fair Enforcement for Mortgage Licensing Act of 2008
(Pub. L. No. 110-289), that provision of this Act shall be held
invalid; however, the remainder of this Act or the application of
the provision to other persons or circumstances is not affected.
SECTION 5. This Act takes effect September 1, 2015.