Texas 2019 - 86th Regular

Texas Senate Bill SB2330 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 2330
	1	+	By: Creighton S.B. No. 2330
	2	+	(Parker)
2	3
3	4
	5	+	A BILL TO BE ENTITLED
4	6		AN ACT
5	7		relating to the temporary authority of certain individuals to
6	8		engage in business as a residential mortgage loan originator.
7	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	10		SECTION 1. Section 157.012(a), Finance Code, is amended to
9	11		read as follows:
10	12		(a) An individual may not act or attempt to act in the
11	13		capacity of a residential mortgage loan originator unless the
12	14		individual is exempt under Section 157.0121 or 180.003(b), is
13	15		acting under the temporary authority described under Section
14	16		180.0511, or:
15	17		(1) is licensed under this chapter, sponsored by an
16	18		appropriate entity, and enrolled with the Nationwide Mortgage
17	19		Licensing System and Registry as required by Section 180.052; and
18	20		(2) complies with other applicable requirements of
19	21		Chapter 180 and rules adopted by the finance commission under that
20	22		chapter.
21	23		SECTION 2. Section 180.051(a), Finance Code, is amended to
22	24		read as follows:
23	25		(a) Unless exempted by Section 180.003 or acting under the
24	26		temporary authority described under Section 180.0511, an
25	27		individual may not engage in business as a residential mortgage
26	28		loan originator with respect to a dwelling located in this state
27	29		unless the individual:
28	30		(1) is licensed to engage in that business under
29	31		Chapter 156, 157, 342, 347, 348, or 351; and
30	32		(2) complies with the requirements of this chapter.
31	33		SECTION 3. Subchapter B, Chapter 180, Finance Code, is
32	34		amended by adding Section 180.0511 to read as follows:
33	35		Sec. 180.0511. TEMPORARY AUTHORITY TO ORIGINATE LOANS.
34	36		(a) A registered mortgage loan originator who does not hold a
35	37		license issued under a chapter listed in Section 180.051(a)(1) is
36	38		considered to have temporary authority to act as a residential
37	39		mortgage loan originator for a period not to exceed 120 days as
38	40		provided by Subsection (d) if the individual:
39	41		(1) becomes employed by an entity that is licensed or
40	42		registered by this state to engage in the business of residential
41	43		mortgage loan origination in this state;
42	44		(2) has not had:
43	45		(A) an application for a residential mortgage
44	46		loan originator license or other loan originator license required
45	47		by another jurisdiction to engage in business as a residential
46	48		mortgage loan originator denied; or
47	49		(B) a residential mortgage loan originator
48	50		license or other loan originator license required by another
49	51		jurisdiction to engage in business as a residential mortgage loan
50	52		originator revoked or suspended in any governmental jurisdiction;
51	53		(3) has not been subject to or served with a cease and
52	54		desist order:
53	55		(A) in any governmental jurisdiction; or
54	56		(B) under 12 U.S.C. Section 5113(c);
55	57		(4) has not been convicted of a misdemeanor or felony
56	58		that would preclude licensure to engage in business as a
57	59		residential mortgage loan originator in this state under the
58	60		chapters listed in Section 180.051(a)(1);
59	61		(5) has submitted to the appropriate regulatory
60	62		official the application form prescribed by the regulatory official
61	63		under Section 180.053 and the information required under Section
62	64		180.054; and
63	65		(6) was registered in the Nationwide Mortgage
64	66		Licensing System and Registry as a loan originator during the
65	67		one-year period preceding the date on which the individual
66	68		submitted to the appropriate regulatory official the application
67	69		form and information required by Subdivision (5).
68	70		(b) An individual licensed by another state or governmental
69	71		jurisdiction to engage in mortgage loan origination in that other
70	72		state or governmental jurisdiction is considered to have temporary
71	73		authority to act as a residential mortgage loan originator in this
72	74		state for a period not to exceed 120 days as provided by Subsection
73	75		(d) if the individual:
74	76		(1) is employed by an entity that is licensed or
75	77		registered by this state to engage in the business of residential
76	78		mortgage loan origination in this state;
77	79		(2) meets the eligibility requirements provided by
78	80		Subsections (a)(2), (3), (4), and (5); and
79	81		(3) held the license issued by another state or
80	82		governmental jurisdiction to engage in mortgage loan origination
81	83		during the 30-day period preceding the date on which the individual
82	84		submitted to the appropriate regulatory official the application
83	85		form required under Section 180.053 and the information required
84	86		under Section 180.054.
85	87		(c) A residential mortgage loan originator licensed by a
86	88		regulatory official to engage in business as a mortgage loan
87	89		originator in this state under a chapter listed in Section
88	90		180.051(a)(1) is considered to have temporary authority to act as a
89	91		residential mortgage loan originator under a different chapter
90	92		listed in Section 180.051(a)(1) for a period not to exceed 120 days
91	93		as provided by Subsection (d) if the individual:
92	94		(1) is employed by an entity that is licensed or
93	95		registered by this state to engage in the business of residential
94	96		mortgage loan origination in this state;
95	97		(2) meets the eligibility requirements provided by
96	98		Subsections (a)(2), (3), (4), and (5); and
97	99		(3) held the license issued by the regulatory official
98	100		to engage in business as a residential mortgage loan originator
99	101		during the 30-day period preceding the date on which the individual
100	102		submitted to the appropriate regulatory official the application
101	103		form required under Section 180.053 and the information required
102	104		under Section 180.054.
103	105		(d) The 120-day period of temporary authority described
104	106		under this section begins on the date on which the individual
105	107		submits to the appropriate regulatory official the application form
106	108		required under Section 180.053 and the information required under
107	109		Section 180.054 and ends on the earliest of:
108	110		(1) the date on which the individual withdraws the
109	111		application;
110	112		(2) the date on which the regulatory official denies
111	113		or issues a notice of intent to deny the application;
112	114		(3) the date on which the regulatory official issues
113	115		the individual a license; or
114	116		(4) the 120th day after the date on which the
115	117		individual submitted the application, if the application is listed
116	118		on the Nationwide Mortgage Licensing System and Registry as
117	119		incomplete.
118	120		(e) A person employing an individual who is considered to
119	121		have temporary authority to act as a residential mortgage loan
120	122		originator in this state under this section is subject to the
121	123		requirements of applicable federal and state laws and to applicable
122	124		rules and regulations to the same extent as if that individual was a
123	125		residential mortgage loan originator licensed by this state.
124	126		(f) An individual who is considered to have temporary
125	127		authority to act as a residential mortgage loan originator in this
126	128		state under this section and who engages in residential mortgage
127	129		loan origination activities is subject to the requirements of
128	130		applicable federal and state laws and to applicable rules and
129	131		regulations to the same extent as if that individual was a
130	132		residential mortgage loan originator licensed by this state.
131	133		SECTION 4. Section 342.0515(b), Finance Code, is amended to
132	134		read as follows:
133	135		(b) Unless exempt under Section 180.003, or acting under the
134	136		temporary authority described under Section 180.0511, an
135	137		individual who acts as a residential mortgage loan originator in
136	138		the making, transacting, or negotiating of a loan subject to this
137	139		chapter must:
138	140		(1) be individually licensed to engage in that
139	141		activity under this chapter;
140	142		(2) be enrolled with the Nationwide Mortgage Licensing
141	143		System and Registry as required by Section 180.052; and
142	144		(3) comply with other applicable requirements of
143	145		Chapter 180 and rules adopted under that chapter.
144	146		SECTION 5. Section 347.4515(b), Finance Code, is amended to
145	147		read as follows:
146	148		(b) Unless exempt under Section 180.003, or acting under the
147	149		temporary authority described under Section 180.0511, an
148	150		individual who acts as a residential mortgage loan originator in
149	151		the making, transacting, or negotiating of an extension of credit
150	152		subject to this chapter must:
151	153		(1) be individually licensed to engage in that
152	154		activity under this chapter;
153	155		(2) be enrolled with the Nationwide Mortgage Licensing
154	156		System and Registry as required by Section 180.052; and
155	157		(3) comply with other applicable requirements of
156	158		Chapter 180 and rules adopted under that chapter.
157	159		SECTION 6. Section 348.5015(b), Finance Code, is amended to
158	160		read as follows:
159	161		(b) Unless exempt under Section 180.003, or acting under the
160	162		temporary authority described under Section 180.0511, an
161	163		individual who acts as a residential mortgage loan originator in
162	164		the sale of a motor vehicle to be used as a principal dwelling must:
163	165		(1) be licensed to engage in that activity under this
164	166		chapter;
165	167		(2) be enrolled with the Nationwide Mortgage Licensing
166	168		System and Registry as required by Section 180.052; and
167	169		(3) comply with other applicable requirements of
168	170		Chapter 180 and rules adopted under that chapter.
169	171		SECTION 7. Section 351.0515(b), Finance Code, is amended to
170	172		read as follows:
171	173		(b) Unless exempt under Section 180.003, or acting under the
172	174		temporary authority described under Section 180.0511, an
173	175		individual who acts as a residential mortgage loan originator in
174	176		the making, transacting, or negotiating of a property tax loan for a
175	177		principal dwelling must:
176	178		(1) be individually licensed to engage in that
177	179		activity under this chapter;
178	180		(2) be enrolled with the Nationwide Mortgage Licensing
179	181		System and Registry as required by Section 180.052; and
180	182		(3) comply with other applicable requirements of
181	183		Chapter 180 and rules adopted under that chapter.
182	184		SECTION 8. Section 180.0511, Finance Code, as added by this
183	185		Act, applies only to an application for a residential mortgage loan
184	186		originator license submitted to the appropriate regulatory
185	187		official, as defined by Section 180.002, Finance Code, on or after
186	188		the effective date of this Act. An application for a residential
187	189		mortgage loan originator license submitted before that date is
188	190		governed by the law in effect on the date the application was
189	191		submitted, and the former law is continued in effect for that
190	192		purpose.
191	193		SECTION 9. This Act takes effect November 24, 2019.
192		-	______________________________ ______________________________
193		-	President of the Senate Speaker of the House
194		-	I hereby certify that S.B. No. 2330 passed the Senate on
195		-	April 17, 2019, by the following vote: Yeas 31, Nays 0.
196		-	______________________________
197		-	Secretary of the Senate
198		-	I hereby certify that S.B. No. 2330 passed the House on
199		-	May 22, 2019, by the following vote: Yeas 144, Nays 0,
200		-	two present not voting.
201		-	______________________________
202		-	Chief Clerk of the House
203		-	Approved:
204		-	______________________________
205		-	Date
206		-	______________________________
207		-	Governor