(a) A person is required to be licensed under Finance
Code, Chapter 156 if the person:
(1) Engages in the business of residential mortgage
loan origination on real property located in the state of Texas;
(2) Represents or holds himself out to the public as
a "loan officer," "mortgage consultant," "mortgage broker," "loan
modification/refinance consultant," or "residential mortgage loan
originator," or otherwise represents that the individual can or will
perform the activities of a residential mortgage loan originator;
(3) Provides disclosures to a prospective borrower
or discusses or explains such disclosures. Disclosures include but
are not limited to the residential mortgage loan originator disclosure
form; truth in lending disclosures, the good faith estimate of settlement
costs, affiliated business arrangements; and disclosures relating
to the dual role as a residential mortgage loan originator and real
estate broker or sales agent. An individual who prepares a required
disclosure under the direction and supervision of a licensed residential
mortgage loan originator, but who does not discuss the disclosure
with a prospective borrower shall not be deemed to have provided a
disclosure for purposes of this paragraph;
(4) Determines the lender(s) or investor(s) to whom
the loan will be submitted;
(5) Issues or signs a prequalification letter or preapproval
(6) Is a loan processor or underwriter who is an independent
(b) Applications for a company or an originator license
must be submitted through the Nationwide Mortgage Licensing System
and Registry and must be on the prescribed application forms.
(c) An application, notice, or any other filing with
the department will only be deemed submitted if it is complete. A
filing is complete only if all required supporting documentation is
included and only if all required fees have been received by the department.
The application may be deemed withdrawn if an applicant fails to provide
to the department, within 30 days from the date of request, any information
or supplemental documentation.
(d) An applicant may be issued a license in an inactive
status if the applicant completes the required application form and
complies with all requirements of licensure except for the requirement
of an approved sponsorship. Upon submission and approval of a sponsorship,
the license may be changed to active status.
(e) The department is limited to those specific license
and registration status codes available through the Nationwide Mortgage
Licensing System and Registry. The Nationwide Mortgage Licensing System
and Registry maintains a website that contains the specific status
codes available and their definitions. The available status codes
changed by the department are reflected in the licensee's record on
the Nationwide Mortgage Licensing System and Registry and on the Nationwide
Mortgage Licensing System and Registry Consumer Access website.
(f) The Commissioner may authorize an investigation
to be conducted against an originator if there is reasonable cause
to suspect or believe that an originator may have been convicted of
a criminal offense which may constitute grounds for the suspension
or revocation of that originator's license.
(g) The Commissioner may require such additional, clarifying,
or supplemental information from any applicant for the issuance of
any license pursuant to Finance Code, Chapter 156 as is deemed necessary
or advisable to determine that the requirements of Finance Code, Chapter
156 have been met.
(h) The Commissioner or the Commissioner's designee
may at their discretion, after reviewing the circumstances of each
situation, issue a license on a conditional basis.
Source Note: The provisions of this §80.100 adopted to be effective July 5, 2012, 37 TexReg 4866; amended to be effective September 5, 2013, 38 TexReg 5702