TX HB4166

Exempts residential real estate owners who make first lien mortgage loans to property purchasers from residential mortgage loan originator licensing requirements, provided that a properly licensed and sponsored originator handles all loan origination activities

Maintains existing exemption for property owners making no more than three residential mortgage loans in any 12-consecutive-month period to purchasers of their property

Adds the new property owner exemption to both Chapter 156 (Mortgage Broker License Act) and Chapter 180 (Texas Secure and Fair Enforcement for Mortgage Licensing Act) of the Finance Code

Updates cross-references in the registered financial services company eligibility requirements to reflect the renumbering of exemption provisions

Takes effect September 1, 2025