S.B. No. 2330
AN ACT
relating to the temporary authority of certain individuals to
engage in business as a residential mortgage loan originator.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 157.012(a), Finance Code, is amended to
read as follows:
(a) An individual may not act or attempt to act in the
capacity of a residential mortgage loan originator unless the
individual is exempt under Section 157.0121 or 180.003(b), is
acting under the temporary authority described under Section
180.0511, or:
(1) is licensed under this chapter, sponsored by an
appropriate entity, and enrolled with the Nationwide Mortgage
Licensing System and Registry as required by Section 180.052; and
(2) complies with other applicable requirements of
Chapter 180 and rules adopted by the finance commission under that
chapter.
SECTION 2. Section 180.051(a), Finance Code, is amended to
read as follows:
(a) Unless exempted by Section 180.003 or acting under the
temporary authority described under Section 180.0511, an
individual may not engage in business as a residential mortgage
loan originator with respect to a dwelling located in this state
unless the individual:
(1) is licensed to engage in that business under
Chapter 156, 157, 342, 347, 348, or 351; and
(2) complies with the requirements of this chapter.
SECTION 3. Subchapter B, Chapter 180, Finance Code, is
amended by adding Section 180.0511 to read as follows:
Sec. 180.0511. TEMPORARY AUTHORITY TO ORIGINATE LOANS.
(a) A registered mortgage loan originator who does not hold a
license issued under a chapter listed in Section 180.051(a)(1) is
considered to have temporary authority to act as a residential
mortgage loan originator for a period not to exceed 120 days as
provided by Subsection (d) if the individual:
(1) becomes employed by an entity that is licensed or
registered by this state to engage in the business of residential
mortgage loan origination in this state;
(2) has not had:
(A) an application for a residential mortgage
loan originator license or other loan originator license required
by another jurisdiction to engage in business as a residential
mortgage loan originator denied; or
(B) a residential mortgage loan originator
license or other loan originator license required by another
jurisdiction to engage in business as a residential mortgage loan
originator revoked or suspended in any governmental jurisdiction;
(3) has not been subject to or served with a cease and
desist order:
(A) in any governmental jurisdiction; or
(B) under 12 U.S.C. Section 5113(c);
(4) has not been convicted of a misdemeanor or felony
that would preclude licensure to engage in business as a
residential mortgage loan originator in this state under the
chapters listed in Section 180.051(a)(1);
(5) has submitted to the appropriate regulatory
official the application form prescribed by the regulatory official
under Section 180.053 and the information required under Section
180.054; and
(6) was registered in the Nationwide Mortgage
Licensing System and Registry as a loan originator during the
one-year period preceding the date on which the individual
submitted to the appropriate regulatory official the application
form and information required by Subdivision (5).
(b) An individual licensed by another state or governmental
jurisdiction to engage in mortgage loan origination in that other
state or governmental jurisdiction is considered to have temporary
authority to act as a residential mortgage loan originator in this
state for a period not to exceed 120 days as provided by Subsection
(d) if the individual:
(1) is employed by an entity that is licensed or
registered by this state to engage in the business of residential
mortgage loan origination in this state;
(2) meets the eligibility requirements provided by
Subsections (a)(2), (3), (4), and (5); and
(3) held the license issued by another state or
governmental jurisdiction to engage in mortgage loan origination
during the 30-day period preceding the date on which the individual
submitted to the appropriate regulatory official the application
form required under Section 180.053 and the information required
under Section 180.054.
(c) A residential mortgage loan originator licensed by a
regulatory official to engage in business as a mortgage loan
originator in this state under a chapter listed in Section
180.051(a)(1) is considered to have temporary authority to act as a
residential mortgage loan originator under a different chapter
listed in Section 180.051(a)(1) for a period not to exceed 120 days
as provided by Subsection (d) if the individual:
(1) is employed by an entity that is licensed or
registered by this state to engage in the business of residential
mortgage loan origination in this state;
(2) meets the eligibility requirements provided by
Subsections (a)(2), (3), (4), and (5); and
(3) held the license issued by the regulatory official
to engage in business as a residential mortgage loan originator
during the 30-day period preceding the date on which the individual
submitted to the appropriate regulatory official the application
form required under Section 180.053 and the information required
under Section 180.054.
(d) The 120-day period of temporary authority described
under this section begins on the date on which the individual
submits to the appropriate regulatory official the application form
required under Section 180.053 and the information required under
Section 180.054 and ends on the earliest of:
(1) the date on which the individual withdraws the
application;
(2) the date on which the regulatory official denies
or issues a notice of intent to deny the application;
(3) the date on which the regulatory official issues
the individual a license; or
(4) the 120th day after the date on which the
individual submitted the application, if the application is listed
on the Nationwide Mortgage Licensing System and Registry as
incomplete.
(e) A person employing an individual who is considered to
have temporary authority to act as a residential mortgage loan
originator in this state under this section is subject to the
requirements of applicable federal and state laws and to applicable
rules and regulations to the same extent as if that individual was a
residential mortgage loan originator licensed by this state.
(f) An individual who is considered to have temporary
authority to act as a residential mortgage loan originator in this
state under this section and who engages in residential mortgage
loan origination activities is subject to the requirements of
applicable federal and state laws and to applicable rules and
regulations to the same extent as if that individual was a
residential mortgage loan originator licensed by this state.
SECTION 4. Section 342.0515(b), Finance Code, is amended to
read as follows:
(b) Unless exempt under Section 180.003, or acting under the
temporary authority described under Section 180.0511, an
individual who acts as a residential mortgage loan originator in
the making, transacting, or negotiating of a loan subject to this
chapter must:
(1) be individually licensed to engage in that
activity under this chapter;
(2) be enrolled with the Nationwide Mortgage Licensing
System and Registry as required by Section 180.052; and
(3) comply with other applicable requirements of
Chapter 180 and rules adopted under that chapter.
SECTION 5. Section 347.4515(b), Finance Code, is amended to
read as follows:
(b) Unless exempt under Section 180.003, or acting under the
temporary authority described under Section 180.0511, an
individual who acts as a residential mortgage loan originator in
the making, transacting, or negotiating of an extension of credit
subject to this chapter must:
(1) be individually licensed to engage in that
activity under this chapter;
(2) be enrolled with the Nationwide Mortgage Licensing
System and Registry as required by Section 180.052; and
(3) comply with other applicable requirements of
Chapter 180 and rules adopted under that chapter.
SECTION 6. Section 348.5015(b), Finance Code, is amended to
read as follows:
(b) Unless exempt under Section 180.003, or acting under the
temporary authority described under Section 180.0511, an
individual who acts as a residential mortgage loan originator in
the sale of a motor vehicle to be used as a principal dwelling must:
(1) be licensed to engage in that activity under this
chapter;
(2) be enrolled with the Nationwide Mortgage Licensing
System and Registry as required by Section 180.052; and
(3) comply with other applicable requirements of
Chapter 180 and rules adopted under that chapter.
SECTION 7. Section 351.0515(b), Finance Code, is amended to
read as follows:
(b) Unless exempt under Section 180.003, or acting under the
temporary authority described under Section 180.0511, an
individual who acts as a residential mortgage loan originator in
the making, transacting, or negotiating of a property tax loan for a
principal dwelling must:
(1) be individually licensed to engage in that
activity under this chapter;
(2) be enrolled with the Nationwide Mortgage Licensing
System and Registry as required by Section 180.052; and
(3) comply with other applicable requirements of
Chapter 180 and rules adopted under that chapter.
SECTION 8. Section 180.0511, Finance Code, as added by this
Act, applies only to an application for a residential mortgage loan
originator license submitted to the appropriate regulatory
official, as defined by Section 180.002, Finance Code, on or after
the effective date of this Act. An application for a residential
mortgage loan originator license submitted before that date is
governed by the law in effect on the date the application was
submitted, and the former law is continued in effect for that
purpose.
SECTION 9. This Act takes effect November 24, 2019.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 2330 passed the Senate on
April 17, 2019, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 2330 passed the House on
May 22, 2019, by the following vote: Yeas 144, Nays 0,
two present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor