04 Nov Texas Regulatory Update
The Finance Commission of Texas (the “Commission”) recently amended its rules concerning residential mortgage loan originators applying for licensure with the Office of Consumer Credit Commissioner (“OCCC”), effective November 7, 2013.
TEXAS RULES 7 TAC 2.101 et seq.
An “RMLO” is a residential (previously registered) mortgage loan originator licensed with the OCCC.
If an application is not completed within 30 days calendar days after the notice of deficiency has been sent to the applicant, the application may be considered abandoned and will be withdrawn.
The OCCC may issue a license in an inactive status if the applicant complies with all requirements of licensure and completes the required application except for the requirement of providing an employer. After the inactive RMLO has submitted an employer and the OCCC has verified that the employer is currently registered or licensed by the OCCC, the license may be changed to active status.
The OCCC may issue a license on a conditional basis.
All application and renewal fees are nonrefundable and nontransferable.
The Commission sets the RMLO application fee at an amount not to exceed $300 and the RMLO annual renewal fee not to exceed $300 for applications filed with the OCCC.
Applicants and RMLOs applying for a license or renewal with the OCCC must pay a nonrefundable $25 recovery fee to the OCCC at the time of application and at the time of renewal.
A license may be renewed if:
- The RMLO submits a completed application for renewal through the NMLS together with the payment of the applicable renewal fee;
- The OCCC determines that the RMLO continues to meet the minimum requirements for license issuance, including financial responsibility, character, and general fitness; and
- The RMLO provides satisfactory evidence that the RMLO has completed the continuing education requirements in the Texas SAFE Act.
Renewal of a license may be rejected for reasons provided in the Texas SAFE Act.
The OCCC may require additional, clarifying, or supplemental information from any applicant for the renewal of a license pursuant to the Texas SAFE Act in order to determine compliance with the law. After initial issuance of a license, the OCCC may require additional criminal and credit background checks in order to determine an RMLO’s continuing compliance with the law.
An RMLO must maintain current information with the NMLS. An RMLO must notify the OCCC by filing a license amendment through the NMLS if there is a change in the RMLO’s address, name, or employer.