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