SB 74

seller-financed home loan exemption drops from five to three

Died in committee

Verdict: No flags

No flagsInitial review

Initial review · graded Oct 19, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to an exemption from residential mortgage loan originator licensing requirements.

Caption from analyzed text · version I.

Summary

Per 12-month period, without a mortgage loan originator license.

This bill tightens one exemption from Texas licensing rules for people who make home loans. Today, a homeowner who sells property and finances the buyer's purchase can make up to five such loans in any 12-month period without a mortgage loan originator license, and the bill lowers that limit to three. Starting September 1, 2025, property owners who seller-finance four or more home sales in a year would need a license or fall outside the exemption.

Labels

Labels: ZOMBIE BILL. Died 2 times: 88R SB 2426 (Died in committee) and this bill (Died in committee). Checked against 88R only.BACK FROM THE DEAD. Same text as a bill filed before that died: 88R SB 2426 (Died in committee). Filed in 2 sessions, counting this one. Checked against 88R only.TRY NO. 2. Filed in 2 sessions: 88R and 89R. Checked against 88R only.NEVER GOT A HEARING. Filed Nov 12, 2024 and referred to the Senate Business & Commerce committee. No public hearing. The bill died.

Receipt

The receipt

89R-SB74 · 2024-11-12

SOLD BY

Sen. Judith ZaffiriniDSenate 21

ITEM

relating to an exemption from residential mortgage loan originator licensing requirements.

WHAT IT DOES

Per 12-month period, without a mortgage loan originator license.

CHARGES

[ ] NONE FOUND

TOTAL

No fiscal note in the loaded record.

HISTORY

Nov 12, 2024Received by the Secretary of the Senate
Nov 12, 2024Filed
Feb 3, 2025Read first time
Feb 3, 2025Referred to Business & Commerce

FILED UNDER

Beats not yet reviewed.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

Judith Zaffirini

Donors

Carlos M. Zaffirini Jr$110,000Killam Development Ltd.$73K Texas Trial Lawyers Association PAC$60K

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Jul 1, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Carlos M. Zaffirini Jr$110,000.00

Killam Development Ltd.$72,700.00

Killam Development Ltd.

$72,700.00

Cash: $10,000.00
Paid by others: $62,700.00
Total: $72,700.00

advertising $33,000.00media $29,700.00

Also funds 3 other sitting lawmakers.

Derived recipient stock · Dec 9, 2024 to Sep 28, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · Dec 16, 2025 to Aug 20, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101011018, 101057658.

Texas Trial Lawyers Association PAC$60,000.00

Texas Trial Lawyers Association PAC

$60,000.00

Cash: $60,000.00
Paid by others: $0.00
Total: $60,000.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Nov 11, 2024 to Aug 31, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100959783, 100987492, 101011018, 101035338, 101057658.

Money

Missing data does not establish zero giving. Display amounts are rounded.

Killam Development Ltd.

$72,700.00

Cash: $10,000.00
Paid by others: $62,700.00
Total: $72,700.00

advertising $33,000.00media $29,700.00

Also funds 3 other sitting lawmakers.

Derived recipient stock · Dec 9, 2024 to Sep 28, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · Dec 16, 2025 to Aug 20, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101011018, 101057658.

Texas Trial Lawyers Association PAC

$60,000.00

Cash: $60,000.00
Paid by others: $0.00
Total: $60,000.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Nov 11, 2024 to Aug 31, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100959783, 100987492, 101011018, 101035338, 101057658.

Votes

No floor vote loaded for this bill.

Fiscal

No fiscal note in the loaded record.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 19, 2026, against the published rubric.

FILED BEFORE

Filed 2 times: 88R and 89R. Checked against 88R only.

88R SB 2426

by Sen. Zaffirini, same lead author · Died in committee · same text

Introduced text

Last action, Mar 23, 2023: Referred to Business & Commerce

Relating to an exemption from residential mortgage loan originator licensing requirements.

Caption, 88R bill history

Sources

Texas Senate · Filed Nov 12, 2024

02/03/2025 S Referred to Business & Commerce

Texas Legislature Online · Introduced

Data snapshot Oct 26, 2026 at 4:20 AM CDT. Grades, charges, quotes and corrections follow the published record.

Senate committee · Business & Commerce · Final status: Died in committee

Subjects

Financial--General

Property Interests--Mortgages & Liens

Text

The text as introduced · 273 words

89R2761 SRA-F

By: Zaffirini
S.B. No. 74

A BILL TO BE ENTITLED

AN ACT

relating to an exemption from residential mortgage loan originator

licensing requirements.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 157.0121(b), Finance Code, is amended to

read as follows:

(b) The following individuals are exempt from this chapter:

(1) a registered mortgage loan originator when acting

for:

(A) a depository institution;

(B) a subsidiary of a depository institution that

is:

(i) owned and controlled by the depository

institution; and

(ii) regulated by a federal banking agency;

or

(C) an institution regulated by the Farm Credit

Administration;

(2) an individual who offers or negotiates the terms

of a residential mortgage loan with or on behalf of an immediate

family member of the individual;

(3) a licensed attorney who negotiates the terms of a

residential mortgage loan on behalf of a client as an ancillary

matter to the attorney's representation of the client, unless the

attorney:

(A) takes a residential mortgage loan

application; and

(B) offers or negotiates the terms of a

residential mortgage loan;

(4) an individual who offers or negotiates terms of a

residential mortgage loan secured by a dwelling that serves as the

individual's residence;

(5) any owner of residential real estate who in any

12-consecutive-month period makes no more than three [ five ]

residential mortgage loans to purchasers of the property for all or

part of the purchase price of the residential real estate against

which the mortgage is secured; and

(6) an individual who is exempt as provided by Section

180.003(b).

SECTION 2. This Act takes effect September 1, 2025.