Relating to an exemption for certain property owners from regulatory requirements for residential mortgage loan originators.

HB 4166 would exempt small-scale residential property owners from Texas mortgage licensing requirements. Specifically, it would allow owners who make no more than three residential mortgage loans per year to operate without registering as mortgage loan originators. This applies to individuals or entities purchasing property for their own use (not as a business), such as landlords or homeowners selling their property. The exemption removes the need for registration, business plans, complaint handling, and other regulatory requirements under Section 156.2012 of the Texas Finance Code. The bill failed to pass in the 2025 legislative session.