WBK Industry News - State Regulatory Developments

Texas Adopts Rules Amending Various Requirements for Licensees

The Finance Commission of Texas (Commission) recently adopted rules revising and clarifying certain licensing procedures applicable to licensed Mortgage Loan Companies and licensed Mortgage Bankers and Mortgage Loan Originators (MLOs).  The amendments include, among other things, (1) new MLO sponsorship requirements, background check procedures and criteria for MLO applicant criminal history; (2) a 10-day notice requirement for any material changes to a licensee’s Form MU-1; (3) new advertising, records storage, office locations, branch offices, and administrative offices requirements, including changes to facilitate remote work; (4) a change providing that the person who will receive notice of examination will be the “primary contact person” rather than the qualifying individual; and (5) definitional updates.  The rules became effective November 4, 2021.