85R26115 CLG-D     By: Ortega, Thompson of Harris, Kuempel, H.B. No. 3088       Giddings     Substitute the following for H.B. No. 3088:     By:  Dean C.S.H.B. No. 3088       A BILL TO BE ENTITLED   AN ACT   relating to exemptions for certain residential property owners from   the applicability of certain regulations of residential mortgage   loan companies and residential mortgage loan originators.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 156.202, Finance Code, is amended by   amending Subsection (a-1) and adding Subsection (b) 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)  subject to Subsection (b), 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.          (b)  In determining eligibility for an exemption under   Subsection (a-1)(3), 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 affiliates, as defined by   Section 1.002(1), Business Organizations Code, or if any of the   owners have substantially common ownership, as determined by the   commissioner. In this subsection, "owners of residential real   estate" include corporations, limited partnerships, limited   liability companies, professional associations, cooperatives, and   real estate investment trusts.           SECTION 2.  Section 157.0121, Finance Code, is amended by   amending Subsection (c) and adding Subsection (f) 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)  subject to Subsection (f), 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.          (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 affiliates, as defined by   Section 1.002(1), Business Organizations Code, or if any of the   owners have substantially common ownership, as determined by the   commissioner. In this subsection, "owners of residential real   estate" include corporations, limited partnerships, limited   liability companies, professional associations, cooperatives, and   real estate investment trusts.          SECTION 3.  Section 180.003, Finance Code, is amended by   amending Subsection (a) and adding Subsection (d) 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)  subject to Subsection (d), 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)  subject to Subsection (d), 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.          (d)  In determining eligibility for an exemption under   Subsection (a)(5) or (6), two or more owners of residential real   estate or a dwelling, as applicable, are considered a single owner   for the purpose of computing the number of mortgage loans made   within the period specified by those subdivisions if any of the   owners are affiliates, as defined by Section 1.002(1), Business   Organizations Code, or if any of the owners have substantially   common ownership, as determined by the savings and mortgage lending   commissioner.          SECTION 4.  This Act takes effect September 1, 2017.