2025 Texas Statutes
Finance Code
Title 3 - Financial Institutions and Businesses
Subtitle E - Other Financial Businesses
Chapter 180 - Residential Mortgage Loan Originators
Subchapter B. Licensing and Registration Requirements
Section 180.055. Issuance of License
Sec. 180.055. ISSUANCE OF LICENSE. (a) The regulatory official may not issue a residential mortgage loan originator license to an individual unless the regulatory official determines, at a minimum, that the applicant:
(1) has not had a residential mortgage loan originator license revoked in any governmental jurisdiction;
(2) has not been convicted of, or pled guilty or nolo contendere to, a felony in a domestic, foreign, or military court:
(A) during the seven-year period preceding the date of application; or
(B) at any time preceding the date of application, if the felony involved an act of fraud, dishonesty, breach of trust, or money laundering;
(3) demonstrates financial responsibility, character, and general fitness so as to command the confidence of the community and to warrant a determination that the individual will operate honestly, fairly, and efficiently as a residential mortgage loan originator within the purposes of this chapter and any other appropriate regulatory law of this state;
(4) provides satisfactory evidence that the applicant has completed prelicensing education courses described by Section 180.056;
(5) provides satisfactory evidence of having passed a written test that meets the requirements of Section 180.057; and
(6) has paid a recovery fund fee or obtained a surety bond as required under the appropriate state regulatory law.
(b) A revocation that has been formally vacated may not be considered a license revocation for purposes of Subsection (a)(1).
(c) A conviction for which a full pardon has been granted may not be considered a conviction for purposes of Subsection (a)(2).
(d) For purposes of Subsection (a)(3), an individual is considered not to be financially responsible if the individual has shown a lack of regard in managing the individual's own financial affairs or condition. A determination that an individual has not shown financial responsibility may not be based on the individual's default on a student loan but may include:
(1) an outstanding judgment against the individual, other than a judgment imposed solely as a result of medical expenses;
(2) an outstanding tax lien or other governmental liens and filings;
(3) a foreclosure during the three-year period preceding the date of the license application; and
(4) a pattern of seriously delinquent accounts, other than student loan accounts, during the three-year period preceding the date of the application.
Added by Acts 2009, 81st Leg., R.S., Ch. 1104 (H.B. 10), Sec. 1, eff. June 19, 2009.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 506 (S.B. 37), Sec. 5, eff. June 7, 2019.
