The Finance Commission of Texas (“Finance Commission”) proposes amendments to Sections 80.1, 80.2, 80.8, 80.9, 80.10, 80.11, 80.12, 80.13, 80.14, 80.15, 80.20, 80.21, 80.22, and 80.23 of the Mortgage Broker and Loan Officer Licensing regulations contained in the Texas Administrative Code at 7 TAC Chapter 80. In addition, the Finance Commission proposes new Subchapter L, Licensing, Sections 80.301, 80.302, 80.303, 80.304, 80.305, 80.306, and 80.307. The text of these proposed amended and new regulations (“Proposed Rules”) may be found in the above cited issue of the Texas Register, and you are advised to read these Proposed Rules and not rely on the summary contained in this memorandum. Comments on the Proposed Rules may be submitted in writing to Douglas B. Foster, Commissioner, Texas Department of Savings and Mortgage Lending, 2601 North Lamar, Suite 201, Austin, Texas 78705 or e-mailed to, no later than April 5, 2010. Some of the more important Proposed Rules are briefly summarized below: The proposed amendment to Section 80.1, Scope, provides that existing Subchapter A, Licensing, is to be rescinded on January 1, 2011, and is to be replaced by new Subchapter L, Licensing, Sections 80.301 – 80.307. The proposed amendment to Section 80.2, Definitions, replaces the definition for “Mortgage Loan” with the definition of “Residential Mortgage Loan.” Definitions for the terms “Dwelling” and “Residential Real Estate” have also been added. Although still defined in Section 80.2, in some of the proposed amended regulations the terms “Mortgage Broker” and “Loan Officer” are replaced with the term “Residential Mortgage Loan Originator.” In addition, the term “Mortgage Loan” is replaced with the term “Residential Mortgage Loan.” The proposed amendment to Section 80.10, Prohibition on False, Misleading, or Deceptive Practices and Improper Dealings, eliminates the language that a sponsoring broker engages in false, misleading or deceptive practices or improper dealings when affiliating with a second mortgage broker who engages in false, misleading, or deceptive practices. The proposed amendment to Section 80.12, License Record Changes, provides that changes in address, personal name, or company or organization name shall be filed through the Nationwide Mortgage Licensing System and Registry together with the payment of any applicable fees.

Complete Memorandum