Bill Caption

Relating to certain qualifications and requirements for residential mortgage loan companies, the investment and use of excess residential mortgage loan originator recovery fund fees, and the creation of the mortgage grant fund; changing a fee.

Fiscal Notes

No fiscal implication to the State is anticipated.

Bill Analysis

HB 3617 would allow mortgage bank loan originators licensed by the Department of Savings and Mortgage Lending to keep their license and continue doing business in Texas without maintaining a physical office in Texas.

HB 3617 would also alter an existing license fee structure to remove renewal fees but standardize the first time fee to $20, whereas current law allows the fee, and the subsequent renewal fess, to be flexible to a maximum of $20.

HB 3617 would also require the savings and mortgage lending commissioner to establish a mortgage grant fund.

Vote Recommendation Notes

We are supportive of some provisions of the bill, including allowing mortgage lenders to continue to do business in Texas without having a physical office located in this state. In our modern, mobile economy it makes little sense to keep this mandate in place. On the other hand we oppose the creation of a new mortgage grant fund. Texas Action remains neutral on HB 3617.