HomeMy WebLinkAboutR2011-034s:\legal\our documentslresolutions1111tm1 legislative resolution - safe act resolution (sept 2011).doc
RESOLUTION NO. �011-034
A RESOLUTION OF THE CITY OF DENTON, TEXAS, IN SUPPORT OF THE PASSAGE
OF LEGISLATION DURING THE 83rd STATE LEGISLATIVE SESSION THAT WILL
REVISE THE CURRENT INTERPRETATION OF THE TEXAS ADMINISTR.ATIVE CODE
SUCH THAT STAFF OF MUNICIPAL GOVERNMENTS AND NON-PROFIT HOUSING
ORGANIZATIONS ARE NOT DESIGNATED AS MORTGAGE LOAN ORIGINATORS
AND ARE THEREFORE NOT REQUIRED TO MEET STATE LICENSING
REQUIRMENTS; AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City of Denton, Texas is a duly incorporated municipality located in
Denton County, and created in accordance with the provisions of Chapter 8 of the Local
Government Code and operating pursuant to the enabling legislation of the State of Texas; and
WHEREAS, the Texas SAFE Act was passed on June 19, 2009 for the stated purpose of
ensuring compliance with the Federal SAFE Act by those considered "mortgage loan
originators" in the State of Texas; and
WHEREAS, the Texas Department of Savings and Mortgage Lending (TX SML) was
given the responsibility of setting up training, testing and licensing procedures for "mortgage
loan originators" doing business in the State; and
WHEREAS, it was determined by the TX SML that local government and non-profit
housing organization employees that assisted in providing homebuyer assistance and residential
rehabilitation loans with Federal and State grant funding, were to be considered "mortgage loan
originators" and required these individuals to be licensed to carry out this function; and
WHEREAS, Title 7, Part 4, Chapter 80, of the Texas Administrative Code requires
employees of government agencies or housing finance agencies, who act as "mortgage loan
originators" in accordance with their duties as employees of such agencies, to abide by the
licensing and registration requirements of the Texas SAFE Act; and
WHEREAS, the "mortgage loan originators" training and testing required by TX SML is
not applicable to the type of housing assistance provided by cities and non-profits and thus
wasteful of limited staff time and funds spent on unnecessary training and testing; and
WHEREAS, a recent HOME Final Rule issued by the U.S. Department of Housing and
Urban Development (HUD) on June 30, 2011, stated that employees of governments and
housing finance agencies are not subject to the licensing and registration requirements of the
Federal SAFE Act; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES:
SECTION 1. The City Council of the City of Denton, Texas, does hereby support the
passage of legislation during the 83rd State Legislative Session that will revise the current
interpretation of the Texas Administrative Code, such that staff of municipal governments and
non-profit housing organizations are not designated as mortgage loan originators and are
therefore not required to meet state licensing requirements.
s:llegallour documentslresolutions\l lltml legisaltive resolution - safe act resolution (sept 2011).doc
SECTION 2. City staff is directed to take all necessary steps to obtain the SUPPORT of
the Texas Municipal League (TML) and the inclusion of this matter on TML's legislative
agenda.
SECTION 3. This Resolution shall be effective from its date of adoption.
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PASSED AND APPROVED this the ��— day of �„Ci���2� , 2011.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
B
APP OVED TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
BY: � �
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,
MARK . BURROUG'�IS, MAYOR
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