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S.B. No. 988
AN ACT
relating to education courses required for a mortgage broker or
loan officer license.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 156.204, Finance Code, is amended by
reenacting and amending Subsection (c), as amended by Chapters 170
and 171, Acts of the 78th Legislature, Regular Session, 2003, and
adding Subsection (e) to read as follows:
(c) To be eligible to be licensed as a loan officer a person
must:
(1) be an individual who is at least 18 years of age;
(2) be a citizen of the United States or a lawfully
admitted alien;
(3) designate in the application the name of the
mortgage broker sponsoring the loan officer;
(4) provide the commissioner with satisfactory
evidence that the applicant satisfies one of the following:
(A) the person meets one of the requirements
described by Subsection (a)(4);
(B) the person has successfully completed 30 [15]
hours of education courses approved by the commissioner under this
section;
(C) the person has 18 months of experience as a
loan officer as evidenced by documentary proof of full-time
employment as a loan officer with a mortgage broker or a person
exempt under Section 156.202; or
(D) for applications received prior to January 1,
2000, the mortgage broker that will sponsor the applicant provides
a certification under oath that the applicant has been provided
necessary and appropriate education and training regarding all
applicable state and federal law and regulations relating to
mortgage loans;
(5) not have been convicted of a criminal offense that
the commissioner determines directly relates to the occupation of a
loan officer as provided by Chapter 53, Occupations Code;
(6) satisfy the commissioner as to the individual's
good moral character, including the individual's honesty,
trustworthiness, and integrity; [and]
(7) [(6)] provide the commissioner with satisfactory
evidence of having passed an examination, offered by a testing
service or company approved by the finance commission, that
demonstrates knowledge of:
(A) the mortgage industry; and
(B) the role and responsibilities of a loan
officer; and
(8) [(7)] not be in violation of this chapter, a rule
adopted under this chapter, or any order previously issued to the
individual by the commissioner.
(e) The education courses required for a loan officer
license under Subsection (c)(4)(B) must cover ethics, the Real
Estate Settlement Procedures Act of 1974 (12 U.S.C. Section 2601 et
seq.), the Truth in Lending Act (15 U.S.C. Section 1601 et seq.),
the Equal Credit Opportunity Act (15 U.S.C. Section 1691 et seq.),
and the provisions of this chapter.
SECTION 2. Section 156.208, Finance Code, is amended by
amending Subsection (g) and adding Subsection (i) to read as
follows:
(g) The finance commission shall adopt rules related to the
approval of courses for continuing education credit under this
section that provide for the acceptance of continuing education
courses that are related to finance, financial consulting, lending,
real estate contracts, discrimination laws, deceptive trade
practices, real property conveyances, and other topics that are
relevant to mortgage brokers and that are acceptable as continuing
education courses to other professional licensing agencies or
related trade associations. The finance commission may approve any
education course approved by the Texas Real Estate Commission, the
Mortgage Bankers Association of America, or the National
Association of Mortgage Brokers.
(i) The finance commission shall adopt a rule that requires
a mortgage broker or loan officer to attend, during the term of the
current license, not less than eight hours of continuing education
courses related to residential mortgage lending before renewing a
license under this section.
SECTION 3. (a) The changes in law made by this Act to
Section 156.204, Finance Code, apply only to an individual who
applies for a license as a loan officer on or after September 1,
2005. An individual who applies for a license before September 1,
2005, must comply with the requirements in effect on the date the
application was submitted, and the former law is continued in
effect for that purpose.
(b) The changes in law made by this Act to Section 156.208,
Finance Code, apply only to an individual who applies to renew the
individual's license on or after September 1, 2005. An individual
who applies to renew a license before September 1, 2005, must comply
with the requirements in effect on the date the application was
submitted, and the former law is continued in effect for that
purpose.
SECTION 4. This Act takes effect September 1, 2005.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 988 passed the Senate on
April 7, 2005, by the following vote: Yeas 31, Nays 0;
May 26, 2005, Senate refused to concur in House amendments and
requested appointment of Conference Committee; May 27, 2005, House
granted request of the Senate; May 29, 2005, Senate adopted
Conference Committee Report by the following vote: Yeas 31,
Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 988 passed the House, with
amendments, on May 25, 2005, by a non-record vote; May 27, 2005,
House granted request of the Senate for appointment of Conference
Committee; May 29, 2005, House adopted Conference Committee Report
by a non-record vote.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor