InfoBytes Blog
Texas Reorganizes Mortgage Licensing Laws
On May 24, Texas enacted SB 1004, which reorganizes and simplifies the state’s mortgage licensing regime. Under current law, mortgage loan originators who are employed by mortgage bankers are licensed under separate sections of the code, which together contain six individual types of licenses. Each of these licenses require the same set of qualifications, however, an originator licensed under one chapter must get a separate license to be qualified under the other chapter, and vice versa. SB 1004 creates a single license type for mortgage origination, which will enable a qualified individual to originate for a mortgage company or a mortgage banker, so long as the individual meets the statutory licensure requirements. The bill makes numerous other revisions relating to the regulation of residential mortgage loan originators, residential mortgage loan companies, mortgage bankers, and residential mortgage loan servicers and raises the fee cap for license applications and renewals. The changes become effective on September 1, 2013.