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STATE OF TEXAS
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Is a license required? |
Yes. The Texas Mortgage License Act, Finance Code, Title 3, Subtitle E, Chapter 156(Attached as Schedule A) section 201 states that "A person may not act in the capacity of, engage in the business of, or advertise or hold that person out as engaging in or conducting the business of a mortgage broker in this state unless the person holds an active mortgage broker license or is exempt under Section 156.202." 156.002.9 states that a mortgage broker means "a person who receives an application from a prospective borrower for the purposes of making a mortgage loan from that person ’s own funds or from the funds of another person." State regulators have stated that this includes loan modification services. |
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State
specific loan modification law? |
No. |
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Advantages
of becoming a licensed Mortgage Broker? |
There is no alternative. |
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Penalties
for operating in the state without a license: |
156.302 allows for a fine no larger than 2,500 for each day the statute is violated |
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Is an
advanced fee permitted? |
156.304 states specific activities which advance fees can be charged for "(1)a fee to obtain a credit report; (2)a fee for the appraisal of the real estate; (3)a fee for processing a mortgage application; (4)a fee for taking a mortgage application; (5)a fee for automated underwriting; (6)a fee for a courier service; (7)a fee to issue a loan commitment; or (8)subject to Subsection (b), a fee for locking in an interest rate." This is an exclusive list, unless activities for loan modification fall under this list, advance fees seem to be barred. |
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Is a
written agreement required? |
There is no requirement in the law for a written agreement. |
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Other
noteworthy information? |
None. |
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Texas
Statutes |
Mortgage Broker License Act: Ctrl + Click Here License application: Ctrl + Click Here |