Texas 2025 - 89th Regular

Texas House Bill HB4166 Compare Versions

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

Old	New	Differences
1	1	89R4944 SRA-F
2	2	By: Guillen H.B. No. 4166
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to an exemption for certain property owners from
10	10	regulatory requirements for residential mortgage loan originators.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 156.2012(b), Finance Code, is amended to
13	13	read as follows:
14	14	(b) To be eligible to register as a registered financial
15	15	services company, a person must:
16	16	(1) be a depository institution exempt from this
17	17	chapter under Section 156.202(a-1)(5)(A) [156.202(a-1)(4)(A)] and
18	18	chartered and regulated by the Office of the Comptroller of the
19	19	Currency, or be a subsidiary of the institution;
20	20	(2) provide a business plan satisfactory to the
21	21	commissioner that sets forth the person's plan to:
22	22	(A) provide education to its sponsored
23	23	residential mortgage loan originators;
24	24	(B) handle consumer complaints relating to its
25	25	sponsored residential mortgage loan originators; and
26	26	(C) supervise the residential mortgage loan
27	27	origination activities of its sponsored residential mortgage loan
28	28	originators;
29	29	(3) pay a registration fee in an amount not to exceed
30	30	$500;
31	31	(4) designate an officer of the person to be
32	32	responsible for the activities of its sponsored residential
33	33	mortgage loan originators;
34	34	(5) submit a completed application through the
35	35	Nationwide Mortgage Licensing System and Registry together with the
36	36	applicable fee required by Subdivision (3) or Subsection (c);
37	37	(6) obtain preapproval from the commissioner that the
38	38	person meets the eligibility requirements for registration as a
39	39	financial services company; and
40	40	(7) not be in violation of this chapter, a rule adopted
41	41	under this chapter, or any order previously issued by the
42	42	commissioner to the applicant.
43	43	SECTION 2. Section 156.202(a-1), Finance Code, is amended
44	44	to read as follows:
45	45	(a-1) The following entities are exempt from this chapter:
46	46	(1) a nonprofit organization:
47	47	(A) providing self-help housing that originates
48	48	zero interest residential mortgage loans for borrowers who have
49	49	provided part of the labor to construct the dwelling securing the
50	50	loan; or
51	51	(B) that has designation as a Section 501(c)(3)
52	52	organization by the Internal Revenue Service and originates
53	53	residential mortgage loans for borrowers who, through a self-help
54	54	program, have provided at least 200 labor hours or 65 percent of the
55	55	labor to construct the dwelling securing the loan;
56	56	(2) a mortgage banker registered under Chapter 157;
57	57	(3) subject to Subsection (b), any owner of
58	58	residential real estate who in any 12-consecutive-month period
59	59	makes no more than three residential mortgage loans to purchasers
60	60	of the property for all or part of the purchase price of the
61	61	residential real estate against which the mortgage is secured;
62	62	[and]
63	63	(4) an owner of residential real estate who makes a
64	64	first lien mortgage loan to a purchaser of the property against
65	65	which the mortgage is secured, provided that all residential
66	66	mortgage loan origination activity in connection with the loan is
67	67	provided by a properly sponsored and authorized licensee who is
68	68	required to comply with the requirements of Chapter 180; and
69	69	(5) an entity that is:
70	70	(A) a depository institution;
71	71	(B) a subsidiary of a depository institution that
72	72	is:
73	73	(i) owned and controlled by the depository
74	74	institution; and
75	75	(ii) regulated by a federal banking agency;
76	76	or
77	77	(C) an institution regulated by the Farm Credit
78	78	Administration.
79	79	SECTION 3. Section 180.003(a), Finance Code, is amended to
80	80	read as follows:
81	81	(a) The following persons are exempt from this chapter:
82	82	(1) a registered mortgage loan originator when acting
83	83	for an entity described by Section 180.002(16)(A)(i), (ii), or
84	84	(iii);
85	85	(2) an individual who offers or negotiates terms of a
86	86	residential mortgage loan with or on behalf of an immediate family
87	87	member of the individual;
88	88	(3) a licensed attorney who negotiates the terms of a
89	89	residential mortgage loan on behalf of a client as an ancillary
90	90	matter to the attorney's representation of the client, unless the
91	91	attorney:
92	92	(A) takes a residential mortgage loan
93	93	application; and
94	94	(B) offers or negotiates the terms of a
95	95	residential mortgage loan;
96	96	(4) an individual who offers or negotiates terms of a
97	97	residential mortgage loan secured by a dwelling that serves as the
98	98	individual's residence;
99	99	(5) subject to Subsection (d), an owner of residential
100	100	real estate who in any 12-consecutive-month period makes no more
101	101	than three residential mortgage loans to purchasers of the property
102	102	for all or part of the purchase price of the residential real estate
103	103	against which the mortgage is secured; [and]
104	104	(6) subject to Subsection (d), an owner of a dwelling
105	105	who in any 12-consecutive-month period makes no more than three
106	106	residential mortgage loans to purchasers of the property for all or
107	107	part of the purchase price of the dwelling against which the
108	108	mortgage or security interest is secured; and
109	109	(7) an owner of residential real estate who makes a
110	110	first lien mortgage loan to a purchaser of the property against
111	111	which the mortgage is secured, provided that all residential
112	112	mortgage loan origination activity in connection with the loan is
113	113	provided by a properly sponsored and authorized licensee who is
114	114	required to comply with the requirements of this chapter.
115	115	SECTION 4. This Act takes effect September 1, 2025.