Terms Used In Texas Finance Code 156.002

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • 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
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
  • Probation: A sentencing alternative to imprisonment in which the court releases convicted defendants under supervision as long as certain conditions are observed.

In this chapter:
(1) “Auxiliary mortgage loan activity company” means a political subdivision of this state or the federal government doing business for consumers in this state, or an organization that qualifies for an exemption from state franchise and sales and use tax as a 501(c)(3) organization, that is involved in affordable home ownership lending programs.
(1-a) “Commissioner” means the savings and mortgage lending commissioner.
(1-b) “Credit union subsidiary organization” has the meaning assigned by § 180.002.
(1-c) “Department” means the Department of Savings and Mortgage Lending.
(2) “Disciplinary action” means an order by the commissioner that requires one or more of the following:
(A) suspension or revocation of a license or registration under this chapter;
(B) probation of a suspension or revocation of a license or registration under this chapter on terms and conditions that the commissioner determines appropriate;
(C) a reprimand of a person licensed or registered under this chapter; or
(D) an administrative penalty imposed on a person licensed or registered under this chapter under § 156.302.
(3) “Finance commission” means the Finance Commission of Texas.
(4) Repealed by Acts 2011, 82nd Leg., R.S., Ch. 655, Sec. 65(a)(1), eff. September 1, 2011.
(4-a) “Independent contractor loan processor or underwriter company” means a corporation, company, partnership, or sole proprietorship that receives compensation for an individual performing clerical or support duties as an independent contractor loan processor or underwriter at the direction of a licensed residential mortgage loan originator.
(4-b) “Inspection” includes examination.
(5) Repealed by Acts 2011, 82nd Leg., R.S., Ch. 655, Sec. 65(a)(1), eff. September 1, 2011.
(6) Repealed by Acts 2011, 82nd Leg., R.S., Ch. 655, Sec. 65(a)(1), eff. September 1, 2011.
(6-a) “Loan processor or underwriter” has the meaning assigned by § 180.002.
(7) “Mortgage applicant” means:
(A) an applicant for a residential mortgage loan; or
(B) a person who is solicited to obtain a residential mortgage loan.
(8) “Mortgage banker” has the meaning assigned by § 157.002.
(8-a) “Mortgage company” means a corporation, company, partnership, or sole proprietorship that engages in the business of residential mortgage loan origination on residential real estate located in this state.
(9) Repealed by Acts 2011, 82nd Leg., R.S., Ch. 655, Sec. 65(a)(1), eff. September 1, 2011.
(10) Repealed by Acts 2011, 82nd Leg., R.S., Ch. 655, Sec. 65(a)(1), eff. September 1, 2011.
(10-a) “Nationwide Mortgage Licensing System and Registry” has the meaning assigned by § 180.002.
(10-b) “Qualifying individual” means an individual who is:
(A) licensed under Chapter 157 as a residential mortgage loan originator; and
(B) designated by a residential mortgage loan company as the company’s representative.
(10-c) “Recovery fund” means the fund established and maintained by the commissioner under Subchapter F and § 13.016.
(11) “Registered financial services company” means a person registered under § 156.2012.
(12) “Residential mortgage loan” has the meaning assigned by § 180.002.
(13) “Residential mortgage loan company” means a person, other than an individual, that engages in the business of residential mortgage loan origination on residential real estate located in this state. The term includes a credit union subsidiary organization, auxiliary mortgage loan activity company, mortgage company, independent contractor loan processor or underwriter company, and financial services company.
(14) “Residential mortgage loan originator” has the meaning assigned by § 180.002.
(15) “Residential real estate” has the meaning assigned by § 180.002.

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