Texas Finance Code 180.055 – Issuance of License
(a) The regulatory official may not issue a residential mortgage loan originator license to an individual unless the regulatory official determines, at a minimum, that the applicant:
(1) has not had a residential mortgage loan originator license revoked in any governmental jurisdiction;
(2) has not been convicted of, or pled guilty or nolo contendere to, a felony in a domestic, foreign, or military court:
(A) during the seven-year period preceding the date of application; or
(B) at any time preceding the date of application, if the felony involved an act of fraud, dishonesty, breach of trust, or money laundering;
(3) demonstrates financial responsibility, character, and general fitness so as to command the confidence of the community and to warrant a determination that the individual will operate honestly, fairly, and efficiently as a residential mortgage loan originator within the purposes of this chapter and any other appropriate regulatory law of this state;
(4) provides satisfactory evidence that the applicant has completed prelicensing education courses described by § 180.056;
(5) provides satisfactory evidence of having passed a written test that meets the requirements of § 180.057; and
(6) has paid a recovery fund fee or obtained a surety bond as required under the appropriate state regulatory law.
(b) A revocation that has been formally vacated may not be considered a license revocation for purposes of Subsection (a)(1).
Terms Used In Texas Finance Code 180.055
- Conviction: A judgement of guilt against a criminal defendant.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- Fraud: Intentional deception resulting in injury to another.
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
- Nolo contendere: No contest-has the same effect as a plea of guilty, as far as the criminal sentence is concerned, but may not be considered as an admission of guilt for any other purpose.
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
(c) A conviction for which a full pardon has been granted may not be considered a conviction for purposes of Subsection (a)(2).
(d) For purposes of Subsection (a)(3), an individual is considered not to be financially responsible if the individual has shown a lack of regard in managing the individual’s own financial affairs or condition. A determination that an individual has not shown financial responsibility may not be based on the individual’s default on a student loan but may include:
(1) an outstanding judgment against the individual, other than a judgment imposed solely as a result of medical expenses;
(2) an outstanding tax lien or other governmental liens and filings;
(3) a foreclosure during the three-year period preceding the date of the license application; and
(4) a pattern of seriously delinquent accounts, other than student loan accounts, during the three-year period preceding the date of the application.