Bill Text: TX HB3945 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to the temporary authority of certain individuals to engage in business as a residential mortgage loan originator.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2019-04-18 - Left pending in committee [HB3945 Detail]
Download: Texas-2019-HB3945-Introduced.html
86R10152 TSR-F | ||
By: Parker | H.B. No. 3945 |
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relating to the temporary authority of certain individuals to | ||
engage in business as a residential mortgage loan originator. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 157.012(a), Finance Code, is amended to | ||
read as follows: | ||
(a) An individual may not act or attempt to act in the | ||
capacity of a residential mortgage loan originator unless the | ||
individual is exempt under Section 157.0121 or 180.003(b), or | ||
acting under the temporary authority granted under Section | ||
180.0511, or: | ||
(1) is licensed under this chapter, sponsored by an | ||
appropriate entity, and enrolled with the Nationwide Mortgage | ||
Licensing System and Registry as required by Section 180.052; and | ||
(2) complies with other applicable requirements of | ||
Chapter 180 and rules adopted by the finance commission under that | ||
chapter. | ||
SECTION 2. Section 180.002(11), Finance Code, is amended to | ||
read as follows: | ||
(11) "Loan processor or underwriter" means an | ||
individual who performs clerical or support duties as an employee | ||
at the direction of and subject to the supervision and instruction | ||
of an individual licensed as a residential mortgage loan | ||
originator, [ |
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acting under the temporary authority granted under Section | ||
180.0511. | ||
SECTION 3. Section 180.051(a), Finance Code, is amended to | ||
read as follows: | ||
(a) Unless exempted by Section 180.003 or acting under the | ||
temporary authority granted under Section 180.0511, an individual | ||
may not engage in business as a residential mortgage loan | ||
originator with respect to a dwelling located in this state unless | ||
the individual: | ||
(1) is licensed to engage in that business under | ||
Chapter 156, 157, 342, 347, 348, or 351; and | ||
(2) complies with the requirements of this chapter. | ||
SECTION 4. Subchapter B, Chapter 180, Finance Code, is | ||
amended by adding Section 180.0511 to read as follows: | ||
Sec. 180.0511. TEMPORARY AUTHORITY FOR EMPLOYMENT | ||
TRANSITIONS. (a) A registered mortgage loan originator who does | ||
not hold a license issued under a chapter listed in Section | ||
180.051(a)(1) to engage in business as a residential mortgage loan | ||
originator with respect to a dwelling located in this state may | ||
engage in that business for a period not to exceed 120 days as | ||
provided by Subsection (c) if the individual: | ||
(1) becomes employed by an entity that is licensed or | ||
registered in this state to engage in the business of residential | ||
mortgage loan origination or processing activities with respect to | ||
a dwelling located in this state; | ||
(2) has not had: | ||
(A) an application for a residential mortgage | ||
loan originator license or other loan originator license required | ||
by another jurisdiction to engage in business as a residential | ||
mortgage loan originator denied; or | ||
(B) a residential mortgage loan originator | ||
license or other loan originator license required by another | ||
jurisdiction to engage in business as a residential mortgage loan | ||
originator revoked or suspended in any governmental jurisdiction; | ||
(3) has not been subject to or served with a cease and | ||
desist order: | ||
(A) in any governmental jurisdiction; or | ||
(B) under 12 U.S.C. Section 5113(c); | ||
(4) has not been convicted of a misdemeanor or felony | ||
that would preclude licensure to engage in business as a | ||
residential mortgage loan originator with respect to a dwelling | ||
located in this state under the chapters listed in Section | ||
180.051(a)(1); | ||
(5) has submitted to the appropriate regulatory | ||
official the application form prescribed by the regulatory official | ||
under Section 180.053 and the information required under Section | ||
180.054; and | ||
(6) was registered with, and maintained a unique | ||
identifier through, the Nationwide Mortgage Licensing System and | ||
Registry as a loan originator during the one-year period preceding | ||
the date on which the individual submitted to the appropriate | ||
regulatory official the application form and information required | ||
by Subdivision (5). | ||
(b) A residential mortgage loan originator licensed to | ||
engage in that activity in another state may engage in business as a | ||
residential mortgage loan originator with respect to a dwelling | ||
located in this state for a period not to exceed 120 days as | ||
provided by Subsection (c) without holding a license to engage in | ||
that business issued under a chapter listed in Section | ||
180.051(a)(1) if the individual: | ||
(1) is employed by an entity that is licensed or | ||
registered in this state to engage in the business of residential | ||
mortgage loan origination or processing activities with respect to | ||
a dwelling located in this state; | ||
(2) meets the eligibility requirements provided by | ||
Subsections (a)(2), (3), (4), and (5); and | ||
(3) holds a license issued by another state to engage | ||
in business as a residential mortgage loan originator and held that | ||
license during the 30-day period preceding the date on which the | ||
individual submitted to the appropriate regulatory official the | ||
application form required under Section 180.053 and the information | ||
required under Section 180.054. | ||
(c) The 120-day period of temporary authority granted to an | ||
individual under this section begins on the date on which the | ||
individual submits to the appropriate regulatory official the | ||
application form required under Section 180.053 and the information | ||
required under Section 180.054 and ends on the earliest of: | ||
(1) the date on which the individual withdraws the | ||
application; | ||
(2) the date on which the regulatory official denies | ||
or issues a notice of intent to deny the application; | ||
(3) the date on which the regulatory official issues | ||
the individual a license to engage in business as a residential | ||
mortgage loan originator with respect to a dwelling located in this | ||
state under a chapter listed in Section 180.051(a)(1); or | ||
(4) the 120th day after the date on which the | ||
individual submitted the application, if the application is listed | ||
on the Nationwide Mortgage Licensing System and Registry as | ||
incomplete. | ||
SECTION 5. Section 342.0515(b), Finance Code, is amended to | ||
read as follows: | ||
(b) Unless exempt under Section 180.003, or acting under the | ||
temporary authority granted under Section 180.0511, an individual | ||
who acts as a residential mortgage loan originator in the making, | ||
transacting, or negotiating of a loan subject to this chapter must: | ||
(1) be individually licensed to engage in that | ||
activity under this chapter; | ||
(2) be enrolled with the Nationwide Mortgage Licensing | ||
System and Registry as required by Section 180.052; and | ||
(3) comply with other applicable requirements of | ||
Chapter 180 and rules adopted under that chapter. | ||
SECTION 6. Section 347.4515(b), Finance Code, is amended to | ||
read as follows: | ||
(b) Unless exempt under Section 180.003, or acting under the | ||
temporary authority granted under Section 180.0511, an individual | ||
who acts as a residential mortgage loan originator in the making, | ||
transacting, or negotiating of an extension of credit subject to | ||
this chapter must: | ||
(1) be individually licensed to engage in that | ||
activity under this chapter; | ||
(2) be enrolled with the Nationwide Mortgage Licensing | ||
System and Registry as required by Section 180.052; and | ||
(3) comply with other applicable requirements of | ||
Chapter 180 and rules adopted under that chapter. | ||
SECTION 7. Section 348.5015(b), Finance Code, is amended to | ||
read as follows: | ||
(b) Unless exempt under Section 180.003, or acting under the | ||
temporary authority granted under Section 180.0511, an individual | ||
who acts as a residential mortgage loan originator in the sale of a | ||
motor vehicle to be used as a principal dwelling must: | ||
(1) be licensed to engage in that activity under this | ||
chapter; | ||
(2) be enrolled with the Nationwide Mortgage Licensing | ||
System and Registry as required by Section 180.052; and | ||
(3) comply with other applicable requirements of | ||
Chapter 180 and rules adopted under that chapter. | ||
SECTION 8. Section 351.0515(b), Finance Code, is amended to | ||
read as follows: | ||
(b) Unless exempt under Section 180.003, or acting under the | ||
temporary authority granted under Section 180.0511, an individual | ||
who acts as a residential mortgage loan originator in the making, | ||
transacting, or negotiating of a property tax loan for a principal | ||
dwelling must: | ||
(1) be individually licensed to engage in that | ||
activity under this chapter; | ||
(2) be enrolled with the Nationwide Mortgage Licensing | ||
System and Registry as required by Section 180.052; and | ||
(3) comply with other applicable requirements of | ||
Chapter 180 and rules adopted under that chapter. | ||
SECTION 9. Section 180.0511, Finance Code, as added by this | ||
Act, applies only to an application for a residential mortgage loan | ||
originator license submitted to the appropriate regulatory | ||
official, as defined by Section 180.002, Finance Code, on or after | ||
the effective date of this Act. An application for a residential | ||
mortgage loan originator license submitted before that date is | ||
governed by the law in effect on the date the application was | ||
submitted, and the former law is continued in effect for that | ||
purpose. | ||
SECTION 10. This Act takes effect November 24, 2019. |