| 1 | 1 | | 88R13975 SRA-F |
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| 2 | 2 | | By: Zaffirini S.B. No. 2426 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to an exemption from residential mortgage loan originator |
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| 8 | 8 | | licensing requirements. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 157.0121(b), Finance Code, is amended to |
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| 11 | 11 | | read as follows: |
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| 12 | 12 | | (b) The following individuals are exempt from this chapter: |
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| 13 | 13 | | (1) a registered mortgage loan originator when acting |
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| 14 | 14 | | for: |
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| 15 | 15 | | (A) a depository institution; |
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| 16 | 16 | | (B) a subsidiary of a depository institution that |
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| 17 | 17 | | is: |
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| 18 | 18 | | (i) owned and controlled by the depository |
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| 19 | 19 | | institution; and |
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| 20 | 20 | | (ii) regulated by a federal banking agency; |
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| 21 | 21 | | or |
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| 22 | 22 | | (C) an institution regulated by the Farm Credit |
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| 23 | 23 | | Administration; |
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| 24 | 24 | | (2) an individual who offers or negotiates the terms |
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| 25 | 25 | | of a residential mortgage loan with or on behalf of an immediate |
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| 26 | 26 | | family member of the individual; |
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| 27 | 27 | | (3) a licensed attorney who negotiates the terms of a |
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| 28 | 28 | | residential mortgage loan on behalf of a client as an ancillary |
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| 29 | 29 | | matter to the attorney's representation of the client, unless the |
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| 30 | 30 | | attorney: |
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| 31 | 31 | | (A) takes a residential mortgage loan |
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| 32 | 32 | | application; and |
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| 33 | 33 | | (B) offers or negotiates the terms of a |
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| 34 | 34 | | residential mortgage loan; |
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| 35 | 35 | | (4) an individual who offers or negotiates terms of a |
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| 36 | 36 | | residential mortgage loan secured by a dwelling that serves as the |
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| 37 | 37 | | individual's residence; |
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| 38 | 38 | | (5) any owner of residential real estate who in any |
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| 39 | 39 | | 12-consecutive-month period makes no more than three [five] |
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| 40 | 40 | | residential mortgage loans to purchasers of the property for all or |
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| 41 | 41 | | part of the purchase price of the residential real estate against |
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| 42 | 42 | | which the mortgage is secured; and |
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| 43 | 43 | | (6) an individual who is exempt as provided by Section |
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| 44 | 44 | | 180.003(b). |
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| 45 | 45 | | SECTION 2. This Act takes effect September 1, 2023. |
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