This post is part of my series on legislation in the Texas Senate that “Takes Aim at Wrap-around Mortgages.” SB 1993 is Senator José Rodríguez’s second bill (this one co-authored with Kirk Watson and Judith Zaffirini) to regulate wraps. Here’s how it was described in Senator Judith Zaffirini’s press release:
SB 1993 (Rodríguez) eliminates a loophole that allows wrap lenders and servicers to avoid being licensed by the Texas Department of Savings and Mortgage Lending (TDSML). Right now, only lenders that make five or more loans annually are subject to licensure. Wrap lenders exploit this loophole by making it difficult for TDSML to verify how many transactions they have made. For example, wrap lenders may set up shell land trusts, not record transactions, or use the name of an unsuspecting investor. SB 1993 would eliminate this loophole for wrap lenders and servicers.
You can find the text of the introduced legislation here.Hermann says please like and share!