Beginning in the first quarter of 2026, residential mortgage loan companies and mortgage bankers licensed or registered in Texas that employ independent loan processors and underwriters will be required to comply with a new reporting rule. This change is set out under 7 Texas Administrative Code (TAC) §§ 56.205 for mortgage companies and 57.205 for mortgage bankers.
The requirement affects both mortgage companies—including those that use independent contractor loan processor and underwriter firms—and mortgage bankers who have indicated, or should indicate, on the Nationwide Multistate Licensing System (NMLS) that they are involved in third-party mortgage loan processing or underwriting.
As part of the Mortgage Call Report (MCR) submission process through NMLS, these entities must now complete the “Licensed Processors and Underwriters” section of the State-Specific Supplemental Form (SSSF). The SSSF was introduced as an additional component to the MCR starting with Form Version 6 in April 2024, and it will continue with Form Version 7 scheduled for release in April 2026. The supplemental form collects data specific to Texas that is not included in the general MCR.
Licensees and registrants are required to fill out this section, which includes items SF600 through SF660:
– SF600: Applications In Process at Beginning of Quarter
– SF610: Applications Received for Processing/Underwriting During the Quarter
– SF620: Applications Returned to Creditor, Incomplete
– SF630: Net Changes in Application Amount
– SF640: Other Changes to Applications
– SF650: Applications Processed/Underwritten, Completed
– SF660: Applications In Process at End of Quarter
For each item, applicants must report either dollar amounts as positive whole numbers without symbols or counts as positive whole numbers without symbols.
Companies engaging in third-party processing or underwriting within Texas are advised to review their NMLS business activity designations to ensure accuracy in their MU1 filings. They should also prepare internal teams for compliance with these new requirements ahead of their Q1 2026 MCR filing.
Further information about this new SSSF can be found by visiting the NMLS Resource Center for instructions and reviewing the full text of 7 TAC §56.205 and §57.205.
The Department of Savings and Mortgage Lending oversees this regulatory framework as part of its mission to supervise state-chartered savings banks and regulate over 42,000 residential mortgage loan originators along with more than 4,600 related entities across Texas (official website). The agency operates under the oversight of the Finance Commission of Texas (official website) and has served since its establishment in 1961 (official website). Its responsibilities include protecting depositors, creditors, and borrowers while upholding ethical standards within Texas’s thrift and mortgage sectors (official website).
For questions regarding filing requirements related to SSSF or general MCRs, licensees may contact the Department directly via email.
