The bill amends Section 157.0121(b) of the Finance Code to modify the exemption criteria for individuals from residential mortgage loan originator licensing requirements. Specifically, it changes the limit on the number of residential mortgage loans that an owner of residential real estate can make to purchasers of the property from five to three within a 12-consecutive-month period. This adjustment aims to streamline the licensing process for certain individuals while still maintaining regulatory oversight.

The bill will take effect on September 1, 2025, allowing for a transition period for those affected by the changes. Overall, the legislation seeks to clarify and reduce the regulatory burden on specific individuals involved in residential mortgage transactions, particularly those who are occasional lenders in real estate sales.

Statutes affected:
Introduced: Finance Code 157.0121 (Finance Code 157)