Wednesday, November 16, 2011

New Registration Requirement in Texas

  
Senate Bill 17, entitled the Residential Mortgage Loan Servicer Registration Act, requires the registration of servicers of Texas residential mortgage loans.

A residential mortgage loan servicer is defined as a person or entity who a) receives scheduled payments from a borrower under the terms of a residential mortgage loan, including amounts for escrow accounts; and b) makes the payments of principal and interest to the owner of the loan or other third party and makes any other payments with respect to the amounts received from the borrower as may be required under the terms of the servicing loan document or servicing contract.

Although 3rd party debt collectors are implicitly included in this bill, there are exemptions from the registration fee and bonding requirement provided the applicant:

 - collects delinquent consumer debts owed on residential mortgage loans;
 - does not own the residential mortgage loans for which the applicant acts as a residential mortgage loan servicer; and
 - is a 3rd party debt collector that has filed a bond in compliance with Chapter 392.  

Should you have any questions or issues concerning this matter or should you wish to engage Cornerstone Support's assistance in obtaining specific state licenses or registrations, contact a Cornerstone Support licensing consultant today at 770-587-4595 or e-mail us at info@cornerstonesupport.com. 

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