Bill Text: TX HB3088 | 2017-2018 | 85th Legislature | Comm Sub
Bill Title: Relating to exemptions for certain residential property owners from the applicability of certain regulations of residential mortgage loan companies and residential mortgage loan originators.
Spectrum: Slight Partisan Bill (Democrat 3-1)
Status: (Introduced - Dead) 2017-05-08 - Placed on General State Calendar [HB3088 Detail]
Download: Texas-2017-HB3088-Comm_Sub.html
85R26115 CLG-D | |||
By: Ortega, Thompson of Harris, Kuempel, | H.B. No. 3088 | ||
Giddings | |||
Substitute the following for H.B. No. 3088: | |||
By: Dean | C.S.H.B. No. 3088 |
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relating to exemptions for certain residential property owners from | ||
the applicability of certain regulations of residential mortgage | ||
loan companies and residential mortgage loan originators. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 156.202, Finance Code, is amended by | ||
amending Subsection (a-1) and adding Subsection (b) 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) subject to Subsection (b), 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 property for all or part of the purchase price of the | ||
residential real estate against which the mortgage is secured; and | ||
(4) 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. | ||
(b) In determining eligibility for an exemption under | ||
Subsection (a-1)(3), two or more owners of residential real estate | ||
are considered a single owner for the purpose of computing the | ||
number of mortgage loans made within the period specified by that | ||
subdivision if any of the owners are affiliates, as defined by | ||
Section 1.002(1), Business Organizations Code, or if any of the | ||
owners have substantially common ownership, as determined by the | ||
commissioner. In this subsection, "owners of residential real | ||
estate" include corporations, limited partnerships, limited | ||
liability companies, professional associations, cooperatives, and | ||
real estate investment trusts. | ||
SECTION 2. Section 157.0121, Finance Code, is amended by | ||
amending Subsection (c) and adding Subsection (f) to read as | ||
follows: | ||
(c) Employees of the following entities, when acting for the | ||
benefit of those entities, are exempt from the licensing and other | ||
requirements of this chapter applicable to residential mortgage | ||
loan originators: | ||
(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) subject to Subsection (f), 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 property for all or part of the purchase price of the | ||
residential real estate against which the mortgage is secured; and | ||
(3) 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. | ||
(f) In determining eligibility for an exemption under | ||
Subsection (c)(2), two or more owners of residential real estate | ||
are considered a single owner for the purpose of computing the | ||
number of mortgage loans made within the period specified by that | ||
subdivision if any of the owners are affiliates, as defined by | ||
Section 1.002(1), Business Organizations Code, or if any of the | ||
owners have substantially common ownership, as determined by the | ||
commissioner. In this subsection, "owners of residential real | ||
estate" include corporations, limited partnerships, limited | ||
liability companies, professional associations, cooperatives, and | ||
real estate investment trusts. | ||
SECTION 3. Section 180.003, Finance Code, is amended by | ||
amending Subsection (a) and adding Subsection (d) to read as | ||
follows: | ||
(a) The following persons are exempt from this chapter: | ||
(1) a registered mortgage loan originator when acting | ||
for an entity described by Section 180.002(16)(A)(i), (ii), or | ||
(iii); | ||
(2) an individual who offers or negotiates terms of a | ||
residential mortgage loan with or on behalf of an immediate family | ||
member of the individual; | ||
(3) a licensed attorney who negotiates the terms of a | ||
residential mortgage loan on behalf of a client as an ancillary | ||
matter to the attorney's representation of the client, unless the | ||
attorney: | ||
(A) takes a residential mortgage loan | ||
application; and | ||
(B) offers or negotiates the terms of a | ||
residential mortgage loan; | ||
(4) an individual who offers or negotiates terms of a | ||
residential mortgage loan secured by a dwelling that serves as the | ||
individual's residence; | ||
(5) subject to Subsection (d), an owner of residential | ||
real estate who in any 12-consecutive-month period makes no more | ||
than five residential mortgage loans to purchasers of the property | ||
for all or part of the purchase price of the residential real estate | ||
against which the mortgage is secured; and | ||
(6) subject to Subsection (d), an owner of a dwelling | ||
who in any 12-consecutive-month period makes no more than five | ||
residential mortgage loans to purchasers of the property for all or | ||
part of the purchase price of the dwelling against which the | ||
mortgage or security interest is secured. | ||
(d) In determining eligibility for an exemption under | ||
Subsection (a)(5) or (6), two or more owners of residential real | ||
estate or a dwelling, as applicable, are considered a single owner | ||
for the purpose of computing the number of mortgage loans made | ||
within the period specified by those subdivisions if any of the | ||
owners are affiliates, as defined by Section 1.002(1), Business | ||
Organizations Code, or if any of the owners have substantially | ||
common ownership, as determined by the savings and mortgage lending | ||
commissioner. | ||
SECTION 4. This Act takes effect September 1, 2017. |