Bill Text: TX SB2330 | 2019-2020 | 86th Legislature | Enrolled


Bill Title: Relating to the temporary authority of certain individuals to engage in business as a residential mortgage loan originator.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2019-06-10 - Effective on . . . . . . . . . . . . . . . November 24, 2019 [SB2330 Detail]

Download: Texas-2019-SB2330-Enrolled.html
 
 
  S.B. No. 2330
 
 
 
 
AN ACT
  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), is
  acting under the temporary authority described 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 180.051(a), Finance Code, is amended to
  read as follows:
         (a)  Unless exempted by Section 180.003 or acting under the
  temporary authority described 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 3.  Subchapter B, Chapter 180, Finance Code, is
  amended by adding Section 180.0511 to read as follows:
         Sec. 180.0511.  TEMPORARY AUTHORITY TO ORIGINATE LOANS.
  (a)  A registered mortgage loan originator who does not hold a
  license issued under a chapter listed in Section 180.051(a)(1) is
  considered to have temporary authority to act as a residential
  mortgage loan originator for a period not to exceed 120 days as
  provided by Subsection (d) if the individual:
               (1)  becomes employed by an entity that is licensed or
  registered by this state to engage in the business of residential
  mortgage loan origination 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 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 in 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)  An individual licensed by another state or governmental
  jurisdiction to engage in mortgage loan origination in that other
  state or governmental jurisdiction is considered to have temporary
  authority to act as a residential mortgage loan originator in this
  state for a period not to exceed 120 days as provided by Subsection
  (d) if the individual:
               (1)  is employed by an entity that is licensed or
  registered by this state to engage in the business of residential
  mortgage loan origination in this state;
               (2)  meets the eligibility requirements provided by
  Subsections (a)(2), (3), (4), and (5); and
               (3)  held the license issued by another state or
  governmental jurisdiction to engage in mortgage loan origination
  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)  A residential mortgage loan originator licensed by a
  regulatory official to engage in business as a mortgage loan
  originator in this state under a chapter listed in Section
  180.051(a)(1) is considered to have temporary authority to act as a
  residential mortgage loan originator under a different chapter
  listed in Section 180.051(a)(1) for a period not to exceed 120 days
  as provided by Subsection (d) if the individual:
               (1)  is employed by an entity that is licensed or
  registered by this state to engage in the business of residential
  mortgage loan origination in this state;
               (2)  meets the eligibility requirements provided by
  Subsections (a)(2), (3), (4), and (5); and 
               (3)  held the license issued by the regulatory official
  to engage in business as a residential mortgage loan originator
  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.
         (d)  The 120-day period of temporary authority described
  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; 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.
         (e)  A person employing an individual who is considered to
  have temporary authority to act as a residential mortgage loan
  originator in this state under this section is subject to the
  requirements of applicable federal and state laws and to applicable
  rules and regulations to the same extent as if that individual was a
  residential mortgage loan originator licensed by this state.
         (f)  An individual who is considered to have temporary
  authority to act as a residential mortgage loan originator in this
  state under this section and who engages in residential mortgage
  loan origination activities is subject to the requirements of
  applicable federal and state laws and to applicable rules and
  regulations to the same extent as if that individual was a
  residential mortgage loan originator licensed by this state.
         SECTION 4.  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 described 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 5.  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 described 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 6.  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 described 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 7.  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 described 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 8.  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 9.  This Act takes effect November 24, 2019.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 2330 passed the Senate on
  April 17, 2019, by the following vote:  Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 2330 passed the House on
  May 22, 2019, by the following vote:  Yeas 144, Nays 0,
  two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor
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