Texas § FI.157.0121 - EXEMPTIONS FROM RESIDENTIAL MORTGAGE LOAN ORIGINATOR REQUIREMENTS

§ FI.157.0121. EXEMPTIONS FROM RESIDENTIAL MORTGAGE LOAN ORIGINATOR REQUIREMENTS

EXEMPTIONS FROM RESIDENTIAL MORTGAGE LOAN ORIGINATOR REQUIREMENTS. (a) In this section, "depository institution," "dwelling," "federal banking agency," and "immediate family member" have the meanings assigned by Section 180.002 . (b) The following individuals are exempt from this chapter: (1) a registered mortgage loan originator when acting for: (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; (2) an individual who offers or negotiates the 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) 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 (6) an individual who is exempt as provided by Section 180.003 (b). (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) subject to Subsection (f), any owner of residential real estate who in any 12-consecutive-month period makes no more than three 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. (d) A person is not required to obtain a license under this chapter to originate a loan subject to Chapter 342 or a loan governed by Section 50 (a)(6), Article XVI, Texas Constitution, if the person: (1) is enrolled in the Nationwide Mortgage Licensing System and Registry; (2) is licensed under Chapter 342; and (3) makes consumer loans subject to: (A) Subchapter G, Chapter 342; and (B) Subchapter E or F, Chapter 342 . (e) The finance commission may grant an exemption from the residential mortgage loan originator licensing requirements of this chapter to a municipality, county, community development corporation, or public or private grant administrator to the extent the entity is administering the Texas HOME Investment Partnerships program if the commission determines that granting the exemption is not inconsistent with the intentions of the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (Pub. L. No. 110-289). (f) In determining eligibility for an exemption under Subsection (c)(2), two or more owners of residential real estate are considered a single owner for the purpose of computing the number of mortgage loans made within the period specified by that subdivision if any of the owners are an entity or an affiliate of an entity, including a general partnership, limited partnership, limited liability company, or corporation, as defined by Section 1.002 , Business Organizations Code. Added by Acts 2013, 83rd Leg., R.S., Ch. 160 (S.B. 1004 ), Sec. 60, eff. September 1, 2013. Amended by: Acts 2015, 84th Leg., R.S., Ch. 258 (S.B. 1203 ), Sec. 2, eff. September 1, 2015. Acts 2021, 87th Leg., R.S., Ch. 76 (S.B. 43 ), Sec. 2, eff. January 1, 2022.