Changes to Texas Mortgage Broker Licensing Law

Texas has a new licensing statute that takes effect for applications received on and after September 1, 2007. One of the changes is higher fees to license loan officers: the application fee is $275, $20 is for the recovery fund fee, and $39 is for the background check, for a total of $334.

A mortgage broker company principal will need to have 36 months of origination experience and 90 hours of classroom education taken within the last 2 years if the principal was not previously licensed as a broker or loan officer or 30 hours of classroom education if the principal was licensed as a loan broker. Loan officers must have 18 months of loan origination experience and 30 hours of classroom education taken within the past 2 years or 60 hours of classroom education if the loan officer does not have any origination experience.

Starting January 1, 2008, mortgage broker companies will have to be licensed (unless the company is a sole proprietorship) as well as having the loan officers licensed. The company will have to designate a principal as the company representative and that principal must be a licensed mortgage broker. The company will have to pay a $175 fee for the company license. There are no forms for the company license application created yet.

Additional parts of the changes to the law will take effect on November 1, 2007, however, the regulations to implement those parts have not been finalized.

Changes to Massachusetts Licensing Regulations

Massachusetts' regulations regarding industry experience have changed.

Previously, there was no explicit standard about industry experience requirements. The Division of Banks evaluated each applicant's experience and decided whether the applicant could be trusted to comply with state and federal statutes and regulations concerning the mortgage process.

Now, mortgage brokers must show 3 years of full-time or the equivalent in part-time mortgage industry experience. The experience can be gained by working as a mortgage broker in another state, or working for another mortgage broker or lender or bank in Massachusetts. You don't get any credit for working for an unlicensed broker or in an unlicensed branch office.

An applicant for a mortgage lender license must show 5 years of full-time mortgage industry experience, likewise gained by working as a mortgage broker in another state, or working for another mortgage broker or lender or bank in Massachusetts.

Branch managers must show 3 years of full-time mortgage industry experience.