Bill > HB4166

This bill modifies Texas finance code to provide an additional exemption for property owners from certain regulatory requirements related to residential mortgage loan origination. Specifically, the bill creates a new exemption for property owners who make a first lien mortgage loan to a property purchaser, provided that all mortgage loan origination activities are performed by a properly sponsored and licensed mortgage loan originator who complies with state regulations. The changes are made to three sections of the Finance Code (Sections 156.2012, 156.202, and 180.003), which govern mortgage lending and loan origination requirements. The exemption appears to be designed to allow property owners more flexibility in selling their property by enabling them to facilitate a mortgage loan without being subject to full mortgage loan originator licensing requirements, as long as a licensed professional handles the technical aspects of loan origination. The bill will take effect on September 1, 2025, giving stakeholders ample time to prepare for the regulatory changes. The modifications maintain existing protections by ensuring that licensed professionals are still involved in the mortgage loan process, while providing a streamlined approach for property owners conducting limited mortgage transactions.

Labor and Employment

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB4166