85R9594 EES-F     By: Longoria H.B. No. 2656       A BILL TO BE ENTITLED   AN ACT   relating to exemptions from the Residential Mortgage Loan Company   Licensing and Registration Act.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 156.2012(b), Finance Code, is amended to   read as follows:          (b)  To be eligible to register as a registered financial   services company, a person must:                (1)  be a depository institution exempt from this   chapter under Section 156.202(a-1)(5)(A) [156.202(a-1)(4)(A)] and   chartered and regulated by the Office of the Comptroller of the   Currency, or be a subsidiary of the institution;                (2)  provide a business plan satisfactory to the   commissioner that sets forth the person's plan to:                      (A)  provide education to its sponsored   residential mortgage loan originators;                      (B)  handle consumer complaints relating to its   sponsored residential mortgage loan originators; and                      (C)  supervise the residential mortgage loan   origination activities of its sponsored residential mortgage loan   originators;                (3)  pay a registration fee in an amount not to exceed   $500;                (4)  designate an officer of the person to be   responsible for the activities of its sponsored residential   mortgage loan originators;                (5)  submit a completed application through the   Nationwide Mortgage Licensing System and Registry together with the   applicable fee required by Subdivision (3) or Subsection (c);                (6)  obtain preapproval from the commissioner that the   person meets the eligibility requirements for registration as a   financial services company; and                (7)  not be in violation of this chapter, a rule adopted   under this chapter, or any order previously issued by the   commissioner to the applicant.          SECTION 2.  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 residential real estate   [property] for all or part of the purchase price of the residential   real estate against which the mortgage is secured; [and]                (4)  any owner of residential real estate who makes   residential mortgage loans for the residential real estate on which   no dwelling is constructed to purchasers of the residential real   estate for all or part of the purchase price of the residential real   estate against which the mortgage is secured, provided that the   loans are originated through a licensed and sponsored residential   mortgage loan originator; and                (5)  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.  This Act takes effect September 1, 2017.