Click here for State of Texas Background Check Information and Forms
License Renewal Date: Anniversary Date of Original License
The 79 th Legislative Session passed two bills that modified the Mortgage Broker License Act (MBLA): House Bill 955 and Senate Bill 988. The following information pertains to an application received by the department for an initial license or the renewing of a license on or after 9/1/2005:
- Department Name Change—The current agency name will change to the Texas Department of Savings and Mortgage Lending . Checks and money orders should be made payable to the new agency name.
- Fee Increase—The current licensing fee schedule has been increased to provide additional funding necessary to support the agency's expanded consumer complaint, enforcement, and examination efforts. The new fee schedule is:
| Mortgage Broker |
Loan Officer |
| $375 Application Fee |
$175 Application Fee |
| $20 Recovery Fund |
$20 Recovery Fund |
$39 Background Check
(new applicants only) |
$39 Background Check
(new applicants only) |
- CE Hours Increase for New Applicants—The current requirement for a loan officer applicant needing a 15-hour core (pre-licensing) course in lieu of 18 months of loan origination experience has been expanded to 28 hours of core course training and 2 hours of ethics training for a total of 30 hours.
The 2 hours of ethics training required for pre-licensing must be taken in the classroom.
- CE Hours Redefined for Renewing Licensees—The current requirement of needing 15 hours of continuing education for renewing licensees has changed. The breakdown of the hours required has been established as:
- Minimum requirement of 16 credit hours must be attained within each reporting period
- No less than 2 credit hours related to the IRMPA and Rules
- No less than 14 credit hours related to approved topics
- Excess accumulated hours will not carry over to subsequent reporting periods
- Reporting period for credit hour accumulation begins November 1 and ends October 31, 2 years later
- Initial reporting period will begin November 1, 2006 and end October 31, 2008 for any loan originator licensed, or any QPIC designated, prior to November 1, 2006
|
| 8 hours of Core (including 2 hours of Ethics) |
| 8 hours of either CE or Core |
The 2 hours of ethics training required for license renewal may be taken online.
- Financial Requirements Modified—In completing the Personal Financial Statement, assets that are exempt under federal and state law can no longer be used to determine overall net assets. You may no longer include in your Personal Financial Statement the following: real estate used as primary residence; home furnishings; business tools, equipment, and farming implements; jewelry; recreational vehicles and watercraft; retirement plans; college savings plans; etc. Additional information may be found by reviewing Chapters 41 and 42 of the Texas Property Code .
- Expired License—A person whose license has expired for 91 days or more may not renew the license. The person may obtain a new license by complying with the requirements and procedures for obtaining an original license. The penalty fee for renewing an expired license within the 90 day period is an additional $187.50 for a mortgage broker and $87.50 for a loan officer.
- Appeal of a Licensing Decision—If an applicant wishes to appeal a licensing decision (for example, an applicant is denied a license or the renewing of a license), the applicant must pay a deposit for the hearing costs, not to exceed $500. The deposit will be collected at the time an appeal is filed with the department and will be refunded in full if the applicant prevails, or any remaining balance minus the actual court costs if the department prevails.
NOTICE FROM THE COMMISSIONER
Mortgage Banker Registration
The Mortgage Banker Registration Act (SB 252) became effective this past January 1, 2004 requiring mortgage bankers (by definition in the Act) to register their companies with the Texas Savings and Loan Department.
Mortgage bankers may register online through this website. It is important to first read through the act thoroughly to determine eligibility for registration. The registration fee is non-refundable so make certain you meet the qualifications prior to registering.
The department has received several calls from mortgage bankers stating they had previously received “exemption” letters or determinations from the department. If you are a mortgage banker and have received an “exemption” status from the department, it was in regard to the Mortgage Broker Licensing Act, not the Mortgage Banker Registration Act. The department has not issued any exemption determinations to any mortgage bankers to date from the registration requirements in the Mortgage Banker Registration Act since its effective date of January 1, 2004 .
If you or your company originates 1-4 family residential mortgage loans, you are either required to be licensed as a broker or register your company as a mortgage banker (unless you do meet the specific exemptions listed in the respective acts). Some mortgage brokers assume if they presently have a warehouse line of credit, they are exempt from the broker licensing requirements and some mortgage bankers assume they are exempt from the mortgage banker registration if they were exempt from the Mortgage Broker Licensing Act. Both assumptions very well may be, and most likely are, in error.
With very high priority, the department is underway with researching various sources (HUD approved lists, FNMA/GNMA approved mortgagees, trade directories, investor approved lists, VA approved lenders, etc.) to determine unlicensed and unregistered activity. It is essential that you carefully read the respective acts to determine under which act you should apply or register, and do so promptly. Unlicensed or unregistered activity is considered a serious violation of law and will be dealt with accordingly.
* Mortgage-Education.com offers Pre-License education and testing for the State of Texas.
|
