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 reduces 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 change aims to streamline the licensing process for certain individuals involved in residential mortgage transactions while maintaining regulatory oversight.

The bill will take effect on September 1, 2025, allowing time for stakeholders to adjust to the new regulations. By clarifying the exemption criteria, the legislation seeks to facilitate home buying and selling processes while ensuring that individuals who engage in a limited number of mortgage transactions are not burdened by licensing requirements.

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