85R9594 EES-F
By: Longoria H.B. No. 2656
A BILL TO BE ENTITLED
AN ACT
relating to exemptions from the Residential Mortgage Loan Company
Licensing and Registration Act.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 156.2012(b), Finance Code, is amended to
read as follows:
(b) To be eligible to register as a registered financial
services company, a person must:
(1) be a depository institution exempt from this
chapter under Section 156.202(a-1)(5)(A) [156.202(a-1)(4)(A)] and
chartered and regulated by the Office of the Comptroller of the
Currency, or be a subsidiary of the institution;
(2) provide a business plan satisfactory to the
commissioner that sets forth the person's plan to:
(A) provide education to its sponsored
residential mortgage loan originators;
(B) handle consumer complaints relating to its
sponsored residential mortgage loan originators; and
(C) supervise the residential mortgage loan
origination activities of its sponsored residential mortgage loan
originators;
(3) pay a registration fee in an amount not to exceed
$500;
(4) designate an officer of the person to be
responsible for the activities of its sponsored residential
mortgage loan originators;
(5) submit a completed application through the
Nationwide Mortgage Licensing System and Registry together with the
applicable fee required by Subdivision (3) or Subsection (c);
(6) obtain preapproval from the commissioner that the
person meets the eligibility requirements for registration as a
financial services company; and
(7) not be in violation of this chapter, a rule adopted
under this chapter, or any order previously issued by the
commissioner to the applicant.
SECTION 2. 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 residential real estate
[property] for all or part of the purchase price of the residential
real estate against which the mortgage is secured; [and]
(4) any owner of residential real estate who makes
residential mortgage loans for the residential real estate on which
no dwelling is constructed to purchasers of the residential real
estate for all or part of the purchase price of the residential real
estate against which the mortgage is secured, provided that the
loans are originated through a licensed and sponsored residential
mortgage loan originator; and
(5) 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. This Act takes effect September 1, 2017.