Bill > SB2508

This bill modifies Texas finance laws to create an additional exemption for certain property owners from regulatory requirements for residential mortgage loan originators. Specifically, the bill adds 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 handled by a properly sponsored and authorized licensee who must comply with relevant state regulations (Chapter 180). This change is made in three sections of the Texas Finance Code, specifically amending Sections 156.2012(b), 156.202(a-1), and 180.003(a). The bill updates references and adds language that allows property owners to facilitate a mortgage loan without being subject to full licensing requirements, as long as a licensed mortgage loan originator completes the origination process. The new exemption provides more flexibility for property owners while maintaining consumer protection by ensuring that licensed professionals handle the technical aspects of mortgage loan origination. The bill is set to take effect on September 1, 2025, giving stakeholders ample time to understand and prepare for the new regulatory approach.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB2508