The Housing and Economic Recovery Act signed into law in 2008, which includes the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act), required all states to pass mortgage licensing laws and regulations that meet national standards. Texas lawmakers passed House Bill 10 in 2009, to meet this mandate. Under this bill it requires individuals and entities who are acting as loan originators to be licensed.

Under these terms, as explained to us by the Texas Department of Savings and Mortgage Lending office, the non-profit entity that administers a down payment assistance program and/or owner financing are required to be licensed. This would include the Housing Authority or the subsidiary that controls the DPA program. The deadline to apply for a license was May 31st. I am not sure if this deadline has been extended. The funny thing about this is it frequently says to consult your attorney if you have any questions to see if you are required to be licensed.

Below are documents that explain who needs to be licensed and the requirements to obtain this certification.