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AN ACT
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relating to exemptions from the applicability of the Texas Secure |
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and Fair Enforcement for Mortgage Licensing Act of 2009 and other |
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laws applicable to residential mortgage loan originators. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 156.202(a-1), Finance Code, is amended |
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to read as follows: |
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(a-1) The following entities are exempt from this chapter: |
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(1) a nonprofit organization: |
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(A) providing self-help housing that originates |
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zero interest residential mortgage loans for borrowers who have |
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provided part of the labor to construct the dwelling securing the |
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loan; or |
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(B) that has designation as a Section 501(c)(3) |
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organization by the Internal Revenue Service and originates |
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residential mortgage loans for borrowers who, through a self-help |
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program, have provided at least 200 labor hours or 65 percent of the |
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labor to construct the dwelling securing the loan; |
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(2) a mortgage banker registered under Chapter 157; |
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(3) any owner of residential real estate who in any |
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12-consecutive-month period makes no more than five residential |
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mortgage loans to purchasers of the property for all or part of the |
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purchase price of the residential real estate against which the |
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mortgage is secured; and |
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(4) an entity that is: |
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(A) a depository institution; |
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(B) a subsidiary of a depository institution that |
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is: |
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(i) owned and controlled by the depository |
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institution; and |
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(ii) regulated by a federal banking agency; |
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or |
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(C) an institution regulated by the Farm Credit |
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Administration. |
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SECTION 2. Section 157.0121(c), Finance Code, is amended to |
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read as follows: |
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(c) Employees of the following entities, when acting for the |
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benefit of those entities, are exempt from the licensing and other |
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requirements of this chapter applicable to residential mortgage |
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loan originators: |
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(1) a nonprofit organization: |
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(A) providing self-help housing that originates |
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zero interest residential mortgage loans for borrowers who have |
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provided part of the labor to construct the dwelling securing the |
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loan; or |
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(B) that has designation as a Section 501(c)(3) |
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organization by the Internal Revenue Service and originates |
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residential mortgage loans for borrowers who, through a self-help |
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program, have provided at least 200 labor hours or 65 percent of the |
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labor to construct the dwelling securing the loan; |
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(2) any owner of residential real estate who in any |
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12-consecutive-month period makes no more than five residential |
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mortgage loans to purchasers of the property for all or part of the |
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purchase price of the residential real estate against which the |
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mortgage is secured; and |
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(3) an entity that is: |
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(A) a depository institution; |
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(B) a subsidiary of a depository institution that |
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is: |
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(i) owned and controlled by the depository |
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institution; and |
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(ii) regulated by a federal banking agency; |
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or |
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(C) an institution regulated by the Farm Credit |
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Administration. |
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SECTION 3. Section 180.003(a), Finance Code, is amended to |
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read as follows: |
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(a) The following persons are exempt from this chapter: |
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(1) a registered mortgage loan originator when acting |
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for an entity described by Section 180.002(16)(A)(i), (ii), or |
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(iii); |
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(2) an individual who offers or negotiates terms of a |
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residential mortgage loan with or on behalf of an immediate family |
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member of the individual; |
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(3) a licensed attorney who negotiates the terms of a |
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residential mortgage loan on behalf of a client as an ancillary |
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matter to the attorney's representation of the client, unless the |
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attorney: |
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(A) takes a residential mortgage loan |
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application; and |
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(B) offers or negotiates the terms of a |
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residential mortgage loan; |
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(4) an individual who offers or negotiates terms of a |
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residential mortgage loan secured by a dwelling that serves as the |
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individual's residence; |
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(5) [a nonprofit organization providing self-help
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housing that originates zero interest residential mortgage loans
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for borrowers who have provided part of the labor to construct the
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dwelling securing the loan;
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[(6)] an owner of residential real estate who in any |
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12-consecutive-month period makes no more than five residential |
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mortgage loans to purchasers of the property for all or part of the |
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purchase price of the residential real estate against which the |
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mortgage is secured; and |
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(6) [(7)] an owner of a dwelling who in any |
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12-consecutive-month period makes no more than five residential |
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mortgage loans to purchasers of the property for all or part of the |
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purchase price of the dwelling against which the mortgage or |
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security interest is secured. |
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SECTION 4. The provisions of this Act or the applications of |
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those provisions are severable as provided by Section 311.032(c), |
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Government Code. If the director of the Consumer Financial |
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Protection Bureau determines that any provision of Sections 1 |
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through 3 of this Act fails to meet the requirements of the federal |
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Secure and Fair Enforcement for Mortgage Licensing Act of 2008 |
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(Pub. L. No. 110-289), that provision of this Act shall be held |
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invalid; however, the remainder of this Act or the application of |
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the provision to other persons or circumstances is not affected. |
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SECTION 5. This Act takes effect September 1, 2015. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 1203 passed the Senate on |
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April 30, 2015, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 1203 passed the House on |
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May 19, 2015, by the following vote: Yeas 146, Nays 0, two |
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present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |