Bill > SB74

This bill modifies the Texas Finance Code by reducing the number of residential mortgage loans a property owner can make without requiring a mortgage loan originator license from five to three loans within any consecutive 12-month period. The bill maintains existing exemptions for various individuals and entities, including registered mortgage loan originators working for depository institutions or Farm Credit Administration-regulated institutions, individuals negotiating loans for immediate family members, licensed attorneys handling loans as part of legal representation, individuals securing loans on their own residences, and other specified categories. The key change is the reduction in the number of allowable unlicensed mortgage loans, which aims to provide more oversight of real estate lending activities while still allowing small-scale property owners some flexibility. The bill will take effect on September 1, 2025, giving stakeholders ample time to adjust to the new restrictions.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB74