Texas adopted rules amending the Mortgage Banker Registration and Residential Mortgage Loan Originator License Act. Under the adopted rules, a mortgage banker or loan originator may not do any of the following unless permitted pursuant to the federal Real Estate Settlement Procedures Act:
- offer or agree to share or split any loan origination fees with an applicant;
- rebate all or part of an origination fee to a mortgage applicant;
- reduce established compensation to benefit a mortgage applicant; or
- provide money or anything of value to a mortgage applicant in connection with mortgage loan origination services.
The adopted rules also amended provisions with respect to advertisements, disclosures, recordkeeping, and discount points. The adopted rules went into effect January 3, 2021.
See Texas Secretary of State website for the full text of the Regulations:
* Note that both links need to be viewed in conjunction with each other to get the full text of the regulations.
