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 |
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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), 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 |