As used in this chapter, and in the Commissioner's administration
and enforcement of Finance Code, Chapter 157 and Chapter 180, the
following terms have the meanings indicated:
(1) "Application," as used in Tex. Fin. Code §§157.002(6)
and 180.002(19), and paragraph (16) of this section means a request,
in any form, for an offer (or a response to a solicitation for an
offer) of residential mortgage loan terms, and the information about
the mortgage applicant that is customary or necessary in a decision
on whether to make such an offer, including, but not limited to, a
mortgage applicant's name, income, social security number to obtain
a credit report, property address, an estimate of the value of the
real estate, and/or the mortgage loan amount.
(2) "Commissioner" means the Savings and Mortgage Lending
Commissioner appointed under Finance Code, Chapter 13.
(3) "Commissioner's designee" means an employee of
the Department performing his or her assigned duties or such other
person as the Commissioner may designate in writing. A Commissioner's
designee is deemed to be the Commissioner's authorized "personnel
or representative" as such term is used in Finance Code, Chapter 157.
(4) "Compensation" includes salaries, bonuses, commissions,
and any financial or similar incentive.
(5) "Department" means the Department of Savings and
(6) "Dwelling" means a residential structure that contains
one to four units and is attached to residential real estate. The
term includes an individual condominium unit, cooperative unit, or
manufactured home, if it is used as a residence.
(7) "Mortgage applicant" means an applicant for a residential
mortgage loan or a person who is solicited (or contacts a mortgage
banker or originator in response to a solicitation) to obtain a residential
mortgage loan, and includes a person who has not completed or started
completing a formal loan application on the appropriate form (e.g.,
Fannie Mae's Form 1003 Uniform Residential Loan Application), but
has submitted financial information constituting an application, as
provided by paragraph (1) of this section.
(8) "Mortgage banker" has the meaning assigned by Tex.
Fin. Code §157.002.
(9) "Mortgage company" means, for the purposes of this
chapter, a "residential mortgage loan company" as that term is defined
by Tex. Fin. Code §157.002.
(10) "Nationwide Mortgage Licensing System and Registry"
or "NMLS" has the meaning assigned by Tex. Fin. Code §157.002
(11) "Offers or negotiates the terms of a residential
mortgage loan," as used in Tex. Fin. Code §157.002(6) and §180.002(19)
means, among other things, when an individual:
(A) arranges or assists a mortgage applicant or prospective
mortgage applicant in obtaining or applying to obtain, or otherwise
secures an extension of consumer credit for another person, in connection
with obtaining or applying to obtain a residential mortgage loan;
(B) presents for consideration by a mortgage applicant
or prospective mortgage applicant particular residential mortgage
loan terms (including rates, fees and other costs); or
(C) communicates directly or indirectly with a mortgage
applicant or prospective mortgage applicant for the purpose of reaching
a mutual understanding about particular residential mortgage loan
(12) "Originator" has the meaning assigned by Tex.
Fin. Code §157.002 and §180.002 in defining "residential
mortgage loan originator." Paragraphs (11) and (16) of this section
do not affect the applicability of such statutory definition. Individuals
who are specifically excluded under such statutory definition, as
provided by Tex. Fin. Code §180.002(19)(B), are excluded under
this definition and for purposes of this chapter. Persons who are
exempt from licensure as provided by Tex. Fin. Code §180.003
are exempt for purposes of this chapter, except as otherwise provided
by Tex. Fin. Code §180.051.
(13) "Residential mortgage loan" has the meaning assigned
by Tex. Fin. Code §157.002 and §180.002 and includes new
loans and renewals, extensions, modifications, and rearrangements
of such loans. The term does not include a loan which is secured by
a structure that is suitable for occupancy as a dwelling, but is used
for a commercial purpose such as a professional office, salon, or
other non-residential use, and is not used as a residence.
(14) "Residential real estate" has the meaning assigned
by Tex. Fin. Code §180.002 and includes both improved or unimproved
real estate or any portion of or interest in such real estate on which
a dwelling is or will be constructed or situated.
(15) "Social media site" means any digital platform
accessible by a mortgage applicant or prospective mortgage applicant
where the mortgage banker or sponsored originator does not typically
own the hosting platform but otherwise exerts editorial control or
influence over the content within their account, profile, or other
space on the digital platform, from which the mortgage banker or sponsored
originator posts commercial messages or other content designed to
(16) "Takes a residential mortgage loan application,"
as used in Tex. Fin. Code §157.002(6) and §180.002(19) in
defining "residential mortgage loan originator" means when an individual
receives a residential mortgage loan application for the purpose of
facilitating a decision on whether to extend an offer of residential
mortgage loan terms to a mortgage applicant or prospective mortgage
applicant, whether the application is received directly or indirectly
from the mortgage applicant or prospective mortgage applicant, and
regardless of whether or not a particular lender has been identified
|Source Note: The provisions of this §81.2 adopted to be effective July 5, 2012, 37 TexReg 4873; amended to be effective September 5, 2013, 38 TexReg 5703; amended to be effective June 30, 2016, 41 TexReg 4640; amended to be effective January 7, 2018, 42 TexReg 7583; amended to be effective January 3, 2021, 46 TexReg 157; amended to be effective November 4, 2021, 46 TexReg 7389