1. (a) Purpose. The purpose of this section is to specify residential mortgage loan originator licensing requirements for military service members, military veterans, and military spouses, in accordance with Texas Occupations Code, Chapter 55.

2. (b) Definitions. In this section:

   1. (1) The terms "military service member," "military spouse," and "military veteran" have the meanings provided by Texas Occupations Code, §55.001.
   2. (2) The term "in good standing" has the meaning provided by Texas Occupations Code, §55.0042.
3. (c) Late renewal. As provided by Texas Occupations Code, §55.002, an individual is exempt from any increased fee or other penalty for failing to renew a residential mortgage loan originator license in a timely manner, if the individual establishes to the satisfaction of the OCCC that the individual failed to renew the license in a timely manner because the individual was serving as a military service member.

4. (d) Expedited license procedure under Texas Occupations Code, §55.004 and §55.005.

   1. (1) The expedited license procedure in this subsection applies to a qualifying applicant who is a military service member, military veteran, or military spouse, if the applicant:

      1. (A) holds a current license in good standing in another state as a residential mortgage loan originator in accordance with the S.A.F.E. Mortgage Licensing Act, 12 U.S.C. §§5101-5117; or
      2. (B) held a residential mortgage loan originator license in Texas within the five years preceding the application date.

   2. (2) After the OCCC receives a complete license application from a qualifying applicant under Texas Occupations Code, §55.004 and this subsection, the OCCC will promptly issue a provisional license to the applicant or issue the license for which the applicant applies. A provisional license expires on the earlier of:

      1. (A) the date the OCCC approves or denies the application; or
      2. (B) the 180th day after the date the provisional license is issued.

   3. (3) Not later than the 10th day after the OCCC receives a complete license application from a qualifying applicant under Texas Occupations Code, §55.004 and this subsection, the OCCC will process the application and either:

      1. (A) approve the license application and issue a license to the applicant; or
      2. (B) if the applicant does not meet the eligibility requirements for a license under Texas Finance Code, Chapter 180, deny the license application or send a notice of intent to deny the application.

5. (e) Recognition of out-of-state license for military service member or military spouse under Texas Occupations Code, §55.0041.

   1. (1) As provided by Texas Occupations Code, §55.0041, a military service member or military spouse may engage in business as a residential mortgage loan originator if the member or spouse is currently licensed in good standing in another state as a residential mortgage loan originator in accordance with the S.A.F.E. Mortgage Licensing Act, 12 U.S.C. §§5101-5117.
   2. (2) Before engaging in business in Texas, the military service member or military spouse must comply with the notification requirements described by Texas Occupations Code, §55.0041(b). If the member or spouse does not obtain a residential mortgage loan originator license in Texas, then the member or spouse is limited to the time period described by Texas Occupations Code, §55.0041(d)-(d-1).

   3. (3) After the OCCC receives the information required by Texas Occupations Code, §55.0041(b) from a qualifying applicant, the OCCC will promptly send a notification under subsection (e)(4) of this section or issue a provisional license to the applicant. A provisional license expires on the earlier of:

      1. (A) the date the OCCC sends a notification under subsection (e)(4) of this section; or
      2. (B) the 180th day after the date the provisional license is issued.

   4. (4) Not later than the 10th business day after the date the OCCC receives the information required by Texas Occupations Code, §55.0041(b) from a qualifying applicant, the OCCC will notify the applicant that:

      1. (A) the OCCC recognizes the applicant's out-of-state license;
      2. (B) the application is incomplete; or
      3. (C) the OCCC is unable to recognize the applicant's out-of-state license because the OCCC does not issue a license similar in scope of practice to the applicant's license.
   5. (5) For purposes of this subsection and Texas Occupations Code, §55.0041, a residential mortgage loan originator license issued in another state is similar in scope of practice to a Texas residential mortgage loan originator license if it is issued in accordance with the S.A.F.E. Mortgage Licensing Act, 12 U.S.C. §§5101-5117. The OCCC will verify a license issued in another state through NMLS.
6. (f) Credit toward licensing requirements. As provided by Texas Occupations Code, §55.007, with respect to an applicant who is a military service member or military veteran, the OCCC will credit verified military service, training, or education toward the licensing requirements, other than an examination requirement, for a residential mortgage loan originator license, by considering the service, training, or education as part of the applicant's employment history.

Source Note:The provisions of this §2.108 adopted to be effective November 7, 2019, 44 TexReg 6519; amended to be effective November 16, 2023, 48 TexReg 6583; amended to be effective November 13, 2025, 50 TexReg 7233.