Aimed at protecting consumers, the Texas legislature recently passed new legislation governing mortgage originators. The law was signed into effect by Gov. Rick Perry on June 19 and took effect immediately.
In short, the law mandates that all mortgage originators in Texas possess up-to-date and complete licenses. They must also hold a surety bond or pay toward a fund that covers reimbursement in the event of default, bankruptcy or another financial collapse.
Dubbed the “Secure and Fair Enforcement for Mortgage Licensing Act,” the legislation seeks to ensure the mortgage lending industry is operating without unfair, deceptive, or fraudulent practices by mortgage loan originators.
Strangely enough, it may have some interesting impacts on RV and motor home dealers. The law features new language and requirements for those selling motor vehicles as a primary dwelling unit.
To learn more or read House Bill 10 in full, click here.