Texas 2017 - 85th Regular

Texas House Bill HB3088 Compare Versions

Version 1 (Old)

Version 2 (New)

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1	1	85R26115 CLG-D
2	2	By: Ortega, Thompson of Harris, Kuempel, H.B. No. 3088
3	3	Giddings
4	4	Substitute the following for H.B. No. 3088:
5	5	By: Dean C.S.H.B. No. 3088
6	6
7	7
8	8	A BILL TO BE ENTITLED
9	9	AN ACT
10	10	relating to exemptions for certain residential property owners from
11	11	the applicability of certain regulations of residential mortgage
12	12	loan companies and residential mortgage loan originators.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Section 156.202, Finance Code, is amended by
15	15	amending Subsection (a-1) and adding Subsection (b) to read as
16	16	follows:
17	17	(a-1) The following entities are exempt from this chapter:
18	18	(1) a nonprofit organization:
19	19	(A) providing self-help housing that originates
20	20	zero interest residential mortgage loans for borrowers who have
21	21	provided part of the labor to construct the dwelling securing the
22	22	loan; or
23	23	(B) that has designation as a Section 501(c)(3)
24	24	organization by the Internal Revenue Service and originates
25	25	residential mortgage loans for borrowers who, through a self-help
26	26	program, have provided at least 200 labor hours or 65 percent of the
27	27	labor to construct the dwelling securing the loan;
28	28	(2) a mortgage banker registered under Chapter 157;
29	29	(3) subject to Subsection (b), any owner of
30	30	residential real estate who in any 12-consecutive-month period
31	31	makes no more than five residential mortgage loans to purchasers of
32	32	the property for all or part of the purchase price of the
33	33	residential real estate against which the mortgage is secured; and
34	34	(4) an entity that is:
35	35	(A) a depository institution;
36	36	(B) a subsidiary of a depository institution that
37	37	is:
38	38	(i) owned and controlled by the depository
39	39	institution; and
40	40	(ii) regulated by a federal banking agency;
41	41	or
42	42	(C) an institution regulated by the Farm Credit
43	43	Administration.
44	44	(b) In determining eligibility for an exemption under
45	45	Subsection (a-1)(3), two or more owners of residential real estate
46	46	are considered a single owner for the purpose of computing the
47	47	number of mortgage loans made within the period specified by that
48	48	subdivision if any of the owners are affiliates, as defined by
49	49	Section 1.002(1), Business Organizations Code, or if any of the
50	50	owners have substantially common ownership, as determined by the
51	51	commissioner. In this subsection, "owners of residential real
52	52	estate" include corporations, limited partnerships, limited
53	53	liability companies, professional associations, cooperatives, and
54	54	real estate investment trusts.
55	55	SECTION 2. Section 157.0121, Finance Code, is amended by
56	56	amending Subsection (c) and adding Subsection (f) to read as
57	57	follows:
58	58	(c) Employees of the following entities, when acting for the
59	59	benefit of those entities, are exempt from the licensing and other
60	60	requirements of this chapter applicable to residential mortgage
61	61	loan originators:
62	62	(1) a nonprofit organization:
63	63	(A) providing self-help housing that originates
64	64	zero interest residential mortgage loans for borrowers who have
65	65	provided part of the labor to construct the dwelling securing the
66	66	loan; or
67	67	(B) that has designation as a Section 501(c)(3)
68	68	organization by the Internal Revenue Service and originates
69	69	residential mortgage loans for borrowers who, through a self-help
70	70	program, have provided at least 200 labor hours or 65 percent of the
71	71	labor to construct the dwelling securing the loan;
72	72	(2) subject to Subsection (f), any owner of
73	73	residential real estate who in any 12-consecutive-month period
74	74	makes no more than five residential mortgage loans to purchasers of
75	75	the property for all or part of the purchase price of the
76	76	residential real estate against which the mortgage is secured; and
77	77	(3) an entity that is:
78	78	(A) a depository institution;
79	79	(B) a subsidiary of a depository institution that
80	80	is:
81	81	(i) owned and controlled by the depository
82	82	institution; and
83	83	(ii) regulated by a federal banking agency;
84	84	or
85	85	(C) an institution regulated by the Farm Credit
86	86	Administration.
87	87	(f) In determining eligibility for an exemption under
88	88	Subsection (c)(2), two or more owners of residential real estate
89	89	are considered a single owner for the purpose of computing the
90	90	number of mortgage loans made within the period specified by that
91	91	subdivision if any of the owners are affiliates, as defined by
92	92	Section 1.002(1), Business Organizations Code, or if any of the
93	93	owners have substantially common ownership, as determined by the
94	94	commissioner. In this subsection, "owners of residential real
95	95	estate" include corporations, limited partnerships, limited
96	96	liability companies, professional associations, cooperatives, and
97	97	real estate investment trusts.
98	98	SECTION 3. Section 180.003, Finance Code, is amended by
99	99	amending Subsection (a) and adding Subsection (d) to read as
100	100	follows:
101	101	(a) The following persons are exempt from this chapter:
102	102	(1) a registered mortgage loan originator when acting
103	103	for an entity described by Section 180.002(16)(A)(i), (ii), or
104	104	(iii);
105	105	(2) an individual who offers or negotiates terms of a
106	106	residential mortgage loan with or on behalf of an immediate family
107	107	member of the individual;
108	108	(3) a licensed attorney who negotiates the terms of a
109	109	residential mortgage loan on behalf of a client as an ancillary
110	110	matter to the attorney's representation of the client, unless the
111	111	attorney:
112	112	(A) takes a residential mortgage loan
113	113	application; and
114	114	(B) offers or negotiates the terms of a
115	115	residential mortgage loan;
116	116	(4) an individual who offers or negotiates terms of a
117	117	residential mortgage loan secured by a dwelling that serves as the
118	118	individual's residence;
119	119	(5) subject to Subsection (d), an owner of residential
120	120	real estate who in any 12-consecutive-month period makes no more
121	121	than five residential mortgage loans to purchasers of the property
122	122	for all or part of the purchase price of the residential real estate
123	123	against which the mortgage is secured; and
124	124	(6) subject to Subsection (d), an owner of a dwelling
125	125	who in any 12-consecutive-month period makes no more than five
126	126	residential mortgage loans to purchasers of the property for all or
127	127	part of the purchase price of the dwelling against which the
128	128	mortgage or security interest is secured.
129	129	(d) In determining eligibility for an exemption under
130	130	Subsection (a)(5) or (6), two or more owners of residential real
131	131	estate or a dwelling, as applicable, are considered a single owner
132	132	for the purpose of computing the number of mortgage loans made
133	133	within the period specified by those subdivisions if any of the
134	134	owners are affiliates, as defined by Section 1.002(1), Business
135	135	Organizations Code, or if any of the owners have substantially
136	136	common ownership, as determined by the savings and mortgage lending
137	137	commissioner.
138	138	SECTION 4. This Act takes effect September 1, 2017.