Texas 2019 - 86th Regular

Texas House Bill HB3945 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R10152 TSR-F
2	2	By: Parker H.B. No. 3945
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the temporary authority of certain individuals to
8	8	engage in business as a residential mortgage loan originator.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 157.012(a), Finance Code, is amended to
11	11	read as follows:
12	12	(a) An individual may not act or attempt to act in the
13	13	capacity of a residential mortgage loan originator unless the
14	14	individual is exempt under Section 157.0121 or 180.003(b), or
15	15	acting under the temporary authority granted under Section
16	16	180.0511, or:
17	17	(1) is licensed under this chapter, sponsored by an
18	18	appropriate entity, and enrolled with the Nationwide Mortgage
19	19	Licensing System and Registry as required by Section 180.052; and
20	20	(2) complies with other applicable requirements of
21	21	Chapter 180 and rules adopted by the finance commission under that
22	22	chapter.
23	23	SECTION 2. Section 180.002(11), Finance Code, is amended to
24	24	read as follows:
25	25	(11) "Loan processor or underwriter" means an
26	26	individual who performs clerical or support duties as an employee
27	27	at the direction of and subject to the supervision and instruction
28	28	of an individual licensed as a residential mortgage loan
29	29	originator, [or] exempt from licensure under Section 180.003, or
30	30	acting under the temporary authority granted under Section
31	31	180.0511.
32	32	SECTION 3. Section 180.051(a), Finance Code, is amended to
33	33	read as follows:
34	34	(a) Unless exempted by Section 180.003 or acting under the
35	35	temporary authority granted under Section 180.0511, an individual
36	36	may not engage in business as a residential mortgage loan
37	37	originator with respect to a dwelling located in this state unless
38	38	the individual:
39	39	(1) is licensed to engage in that business under
40	40	Chapter 156, 157, 342, 347, 348, or 351; and
41	41	(2) complies with the requirements of this chapter.
42	42	SECTION 4. Subchapter B, Chapter 180, Finance Code, is
43	43	amended by adding Section 180.0511 to read as follows:
44	44	Sec. 180.0511. TEMPORARY AUTHORITY FOR EMPLOYMENT
45	45	TRANSITIONS. (a) A registered mortgage loan originator who does
46	46	not hold a license issued under a chapter listed in Section
47	47	180.051(a)(1) to engage in business as a residential mortgage loan
48	48	originator with respect to a dwelling located in this state may
49	49	engage in that business for a period not to exceed 120 days as
50	50	provided by Subsection (c) if the individual:
51	51	(1) becomes employed by an entity that is licensed or
52	52	registered in this state to engage in the business of residential
53	53	mortgage loan origination or processing activities with respect to
54	54	a dwelling located in this state;
55	55	(2) has not had:
56	56	(A) an application for a residential mortgage
57	57	loan originator license or other loan originator license required
58	58	by another jurisdiction to engage in business as a residential
59	59	mortgage loan originator denied; or
60	60	(B) a residential mortgage loan originator
61	61	license or other loan originator license required by another
62	62	jurisdiction to engage in business as a residential mortgage loan
63	63	originator revoked or suspended in any governmental jurisdiction;
64	64	(3) has not been subject to or served with a cease and
65	65	desist order:
66	66	(A) in any governmental jurisdiction; or
67	67	(B) under 12 U.S.C. Section 5113(c);
68	68	(4) has not been convicted of a misdemeanor or felony
69	69	that would preclude licensure to engage in business as a
70	70	residential mortgage loan originator with respect to a dwelling
71	71	located in this state under the chapters listed in Section
72	72	180.051(a)(1);
73	73	(5) has submitted to the appropriate regulatory
74	74	official the application form prescribed by the regulatory official
75	75	under Section 180.053 and the information required under Section
76	76	180.054; and
77	77	(6) was registered with, and maintained a unique
78	78	identifier through, the Nationwide Mortgage Licensing System and
79	79	Registry as a loan originator during the one-year period preceding
80	80	the date on which the individual submitted to the appropriate
81	81	regulatory official the application form and information required
82	82	by Subdivision (5).
83	83	(b) A residential mortgage loan originator licensed to
84	84	engage in that activity in another state may engage in business as a
85	85	residential mortgage loan originator with respect to a dwelling
86	86	located in this state for a period not to exceed 120 days as
87	87	provided by Subsection (c) without holding a license to engage in
88	88	that business issued under a chapter listed in Section
89	89	180.051(a)(1) if the individual:
90	90	(1) is employed by an entity that is licensed or
91	91	registered in this state to engage in the business of residential
92	92	mortgage loan origination or processing activities with respect to
93	93	a dwelling located in this state;
94	94	(2) meets the eligibility requirements provided by
95	95	Subsections (a)(2), (3), (4), and (5); and
96	96	(3) holds a license issued by another state to engage
97	97	in business as a residential mortgage loan originator and held that
98	98	license during the 30-day period preceding the date on which the
99	99	individual submitted to the appropriate regulatory official the
100	100	application form required under Section 180.053 and the information
101	101	required under Section 180.054.
102	102	(c) The 120-day period of temporary authority granted to an
103	103	individual under this section begins on the date on which the
104	104	individual submits to the appropriate regulatory official the
105	105	application form required under Section 180.053 and the information
106	106	required under Section 180.054 and ends on the earliest of:
107	107	(1) the date on which the individual withdraws the
108	108	application;
109	109	(2) the date on which the regulatory official denies
110	110	or issues a notice of intent to deny the application;
111	111	(3) the date on which the regulatory official issues
112	112	the individual a license to engage in business as a residential
113	113	mortgage loan originator with respect to a dwelling located in this
114	114	state under a chapter listed in Section 180.051(a)(1); or
115	115	(4) the 120th day after the date on which the
116	116	individual submitted the application, if the application is listed
117	117	on the Nationwide Mortgage Licensing System and Registry as
118	118	incomplete.
119	119	SECTION 5. Section 342.0515(b), Finance Code, is amended to
120	120	read as follows:
121	121	(b) Unless exempt under Section 180.003, or acting under the
122	122	temporary authority granted under Section 180.0511, an individual
123	123	who acts as a residential mortgage loan originator in the making,
124	124	transacting, or negotiating of a loan subject to this chapter must:
125	125	(1) be individually licensed to engage in that
126	126	activity under this chapter;
127	127	(2) be enrolled with the Nationwide Mortgage Licensing
128	128	System and Registry as required by Section 180.052; and
129	129	(3) comply with other applicable requirements of
130	130	Chapter 180 and rules adopted under that chapter.
131	131	SECTION 6. Section 347.4515(b), Finance Code, is amended to
132	132	read as follows:
133	133	(b) Unless exempt under Section 180.003, or acting under the
134	134	temporary authority granted under Section 180.0511, an individual
135	135	who acts as a residential mortgage loan originator in the making,
136	136	transacting, or negotiating of an extension of credit subject to
137	137	this chapter must:
138	138	(1) be individually licensed to engage in that
139	139	activity under this chapter;
140	140	(2) be enrolled with the Nationwide Mortgage Licensing
141	141	System and Registry as required by Section 180.052; and
142	142	(3) comply with other applicable requirements of
143	143	Chapter 180 and rules adopted under that chapter.
144	144	SECTION 7. Section 348.5015(b), Finance Code, is amended to
145	145	read as follows:
146	146	(b) Unless exempt under Section 180.003, or acting under the
147	147	temporary authority granted under Section 180.0511, an individual
148	148	who acts as a residential mortgage loan originator in the sale of a
149	149	motor vehicle to be used as a principal dwelling must:
150	150	(1) be licensed to engage in that activity under this
151	151	chapter;
152	152	(2) be enrolled with the Nationwide Mortgage Licensing
153	153	System and Registry as required by Section 180.052; and
154	154	(3) comply with other applicable requirements of
155	155	Chapter 180 and rules adopted under that chapter.
156	156	SECTION 8. Section 351.0515(b), Finance Code, is amended to
157	157	read as follows:
158	158	(b) Unless exempt under Section 180.003, or acting under the
159	159	temporary authority granted under Section 180.0511, an individual
160	160	who acts as a residential mortgage loan originator in the making,
161	161	transacting, or negotiating of a property tax loan for a principal
162	162	dwelling must:
163	163	(1) be individually licensed to engage in that
164	164	activity under this chapter;
165	165	(2) be enrolled with the Nationwide Mortgage Licensing
166	166	System and Registry as required by Section 180.052; and
167	167	(3) comply with other applicable requirements of
168	168	Chapter 180 and rules adopted under that chapter.
169	169	SECTION 9. Section 180.0511, Finance Code, as added by this
170	170	Act, applies only to an application for a residential mortgage loan
171	171	originator license submitted to the appropriate regulatory
172	172	official, as defined by Section 180.002, Finance Code, on or after
173	173	the effective date of this Act. An application for a residential
174	174	mortgage loan originator license submitted before that date is
175	175	governed by the law in effect on the date the application was
176	176	submitted, and the former law is continued in effect for that
177	177	purpose.
178	178	SECTION 10. This Act takes effect November 24, 2019.