Bill Text: TX HB2656 | 2017-2018 | 85th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the regulation of residential mortgage loan companies, including the registration of mortgage lot lender companies; authorizing a fee.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-05-10 - Placed on General State Calendar [HB2656 Detail]
Download: Texas-2017-HB2656-Introduced.html
Bill Title: Relating to the regulation of residential mortgage loan companies, including the registration of mortgage lot lender companies; authorizing a fee.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-05-10 - Placed on General State Calendar [HB2656 Detail]
Download: Texas-2017-HB2656-Introduced.html
85R9594 EES-F | ||
By: Longoria | H.B. No. 2656 |
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relating to exemptions from the Residential Mortgage Loan Company | ||
Licensing and Registration Act. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 156.2012(b), Finance Code, is amended to | ||
read as follows: | ||
(b) To be eligible to register as a registered financial | ||
services company, a person must: | ||
(1) be a depository institution exempt from this | ||
chapter under Section 156.202(a-1)(5)(A) [ |
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chartered and regulated by the Office of the Comptroller of the | ||
Currency, or be a subsidiary of the institution; | ||
(2) provide a business plan satisfactory to the | ||
commissioner that sets forth the person's plan to: | ||
(A) provide education to its sponsored | ||
residential mortgage loan originators; | ||
(B) handle consumer complaints relating to its | ||
sponsored residential mortgage loan originators; and | ||
(C) supervise the residential mortgage loan | ||
origination activities of its sponsored residential mortgage loan | ||
originators; | ||
(3) pay a registration fee in an amount not to exceed | ||
$500; | ||
(4) designate an officer of the person to be | ||
responsible for the activities of its sponsored residential | ||
mortgage loan originators; | ||
(5) submit a completed application through the | ||
Nationwide Mortgage Licensing System and Registry together with the | ||
applicable fee required by Subdivision (3) or Subsection (c); | ||
(6) obtain preapproval from the commissioner that the | ||
person meets the eligibility requirements for registration as a | ||
financial services company; and | ||
(7) not be in violation of this chapter, a rule adopted | ||
under this chapter, or any order previously issued by the | ||
commissioner to the applicant. | ||
SECTION 2. Section 156.202(a-1), Finance Code, is amended | ||
to read as follows: | ||
(a-1) The following entities are exempt from this chapter: | ||
(1) a nonprofit organization: | ||
(A) providing self-help housing that originates | ||
zero interest residential mortgage loans for borrowers who have | ||
provided part of the labor to construct the dwelling securing the | ||
loan; or | ||
(B) that has designation as a Section 501(c)(3) | ||
organization by the Internal Revenue Service and originates | ||
residential mortgage loans for borrowers who, through a self-help | ||
program, have provided at least 200 labor hours or 65 percent of the | ||
labor to construct the dwelling securing the loan; | ||
(2) a mortgage banker registered under Chapter 157; | ||
(3) any owner of residential real estate who in any | ||
12-consecutive-month period makes no more than five residential | ||
mortgage loans to purchasers of the residential real estate | ||
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real estate against which the mortgage is secured; [ |
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(4) any owner of residential real estate who makes | ||
residential mortgage loans for the residential real estate on which | ||
no dwelling is constructed to purchasers of the residential real | ||
estate for all or part of the purchase price of the residential real | ||
estate against which the mortgage is secured, provided that the | ||
loans are originated through a licensed and sponsored residential | ||
mortgage loan originator; and | ||
(5) an entity that is: | ||
(A) a depository institution; | ||
(B) a subsidiary of a depository institution that | ||
is: | ||
(i) owned and controlled by the depository | ||
institution; and | ||
(ii) regulated by a federal banking agency; | ||
or | ||
(C) an institution regulated by the Farm Credit | ||
Administration. | ||
SECTION 3. This Act takes effect September 1, 2017. |