Test would only apply to new applicants
By ANNE LINEBERRY
5/28/2003

Changes are afoot in the Texas lending business.

Right after the house Democrats finished up their stealth vacation in Oklahoma and made their way back to Austin, they helped pass Senate bill 1578. The bill, which awaits a signature from Governor Rick Perry, outlines educational and other requirements necessary for a mortgage broker or loan officer to obtain a license to operate in the state. It also requires new applicants for these positions to pass a test in order to obtain their license.

If Perry signs the bill, it will take effect in September 2003. Brokers already operating in Texas at that time will not be required to comply with the new regulations.

Texans may also gain access to a home equity line of credit later this year. Currently, the Texas Constitution bans revolving home-equity credit lines. Under House Bill 1841, homeowners would have this option. Because this change requires an amendment to the state's constitution, the measure will be presented to the voters in an upcoming election, according to media reports.

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