As of 06/19/2009, Texas enacted HB 2779 which applies to mortgage originators that are employees of licensed mortgage bankers. The mortgage originators employed by mortgage bankers are defined as those entities that accept applications or make residential mortgage loans and that are approved as: 1) a mortgage with direct endorsement underwriting authority from the U.S. Department of Housing and Urban Development; 2) a seller/servicer of the Federal National Mortgage Association for the Federal Home Loan Mortgage Corporation, or 3) an issuer for the Government National Mortgage Association Lenders. HB 2779 now requires mortgage originators to be licensed and to comply with Chapter 180 requirements of the Finance Code. This new section, Chapter 180, is new to the Code enacted under HB 10; which requires mortgage loan originators that are employed by mortgage bankers pay a fee into a recovery fund or post a surety bond. On April 1, 2010 this law will be active.
Eric is the Chief Marketing Officer of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog.