Texas Adopts Provisions Regarding Timeframes for Pre-Licensing Education and the Definition of Physical Office
Texas has adopted two new rules in regards to the pre-licensing education requirements for residential mortgage loan originators. The first rule authorizes the Finance Commission of Texas to set the expiration period for pre-licensing education of residential mortgage loan originators, and the second rule establishes the expiration period as five years, which is in alignment with current NMLS standards.
Under the new rules, if an individual completes the 20 hours of pre-licensing education required by the S.A.F.E. Act, and fails to obtain a valid license or federal registration within five years from the date of completion, then the individual must take the 20 hours of pre-licensing education again in order to be eligible for a license. The new rule also requires that an individual, who obtains a license or federal registration, but who fails to maintain the license or registration for at least five consecutive years, retake the 20 hours of pre-licensing education.
Although the new rules adopt a five-year timeframe for the aforementioned elements of pre-licensing education, the Finance Commission of Texas stated in its announcement on the Register that it anticipates the timeframe being reduced to three years at the time of the NMLS update currently scheduled for fall 2018.
Finally, the Finance Commission of Texas also amended its administrative code to clarify that a physical office is an actual office where the business of mortgage lending and/or the business of taking or soliciting residential mortgage loan applications are conducted.
Additional information regarding these updates can be found here:
