Texas House Bill HB3945

Texas 2019 - 86th Regular

Caption

Relating to the temporary authority of certain individuals to engage in business as a residential mortgage loan originator.

Impact

The impact of HB 3945 on state laws involves modifying sections of the Finance Code associated with mortgage loan origination. By allowing individuals to work under a temporary authority, the law aims to streamline regulatory processes and provide more accessible pathways for mortgage professionals to engage in business promptly without undue delays. This may enhance workforce mobility within the mortgage industry and, in turn, could potentially benefit consumers seeking prompt assistance in mortgage origination and processing.

Summary

House Bill 3945 seeks to amend provisions related to the licensing of residential mortgage loan originators within Texas. The bill specifically introduces the concept of temporary authority for individuals who are in transition between employment. This temporary authority would allow registered mortgage loan originators, who may not currently hold a Texas license, to operate for a limited timeframe—up to 120 days—while they seek proper licensing under Texas law. This change is intended to facilitate smoother job transitions for mortgage professionals and to reduce the potential gaps in service for consumers during these transitions.

Contention

While the bill aims to provide greater flexibility and support for mortgage loan originators in transition, it may also raise concerns regarding oversight and consumer protection. Critics might argue that allowing unlicensed individuals to operate temporarily without stringent oversight could lead to issues such as inadequate compliance with regulatory standards or consumer risks. Proponents of the bill would likely highlight the benefits of maintaining a robust mortgage workforce and ensuring that consumers continue to receive the essential services they require during employment changes.