Beginning in the first quarter of 2026, residential mortgage loan companies and mortgage bankers licensed or registered in Texas who employ independent loan processors and underwriters will need to meet a new reporting requirement. This change is set out under 7 Texas Administrative Code (TAC) §§ 56.205 for mortgage companies and 57.205 for mortgage bankers.
The new rule affects both mortgage companies—including those that use independent contractor loan processor and underwriter firms—and mortgage bankers who have indicated, or should indicate, in the Nationwide Multistate Licensing System (NMLS) that they engage in third-party mortgage loan processing or underwriting.
As part of the Mortgage Call Report (MCR) submission 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 a supplemental component to the MCR with Form Version 6 in April 2024 and will continue with Form Version 7 planned for release in April 2026. The SSSF collects data specific to Texas that is not included in the general MCR.
Licensees are required to provide detailed information using sections SF600 through SF660. These sections include reporting on applications in process at both the beginning and end of each quarter, applications received for processing or underwriting during the quarter, incomplete applications returned due to non-responsive borrowers, net changes in application amounts, other changes directed by assigning third parties, and completed applications ready for lending decisions.
Entities involved must review their NMLS business activity designations to ensure accurate representation of activities within their MU1 filings. They should also prepare internal teams for compliance with these new requirements ahead of their Q1 2026 filing deadline.
For more details about this requirement, instructions can be found at the NMLS Resource Center along with access to state-specific guides. The full text of relevant administrative codes—7 TAC §56.205 and §57.205—is available online. Questions regarding filing procedures can be directed via email as specified by regulatory guidance.
The Department of Savings and Mortgage Lending oversees this regulatory update as part of its mandate from the State of Texas. The agency operates under oversight from the Finance Commission of Texas (official website). It supervises state-chartered savings banks managing over $290 billion in assets, more than 42,000 residential mortgage loan originators, and over 4,600 related entities (official website). Its mission includes regulating thrift and mortgage sectors across Texas to protect depositors, creditors, borrowers while maintaining ethical standards (official website).
The department focuses on activities within Texas’s borders covering most residential mortgage lending statewide (official website). Established as a state agency in 1961 (official website), it continues its work from headquarters located at 2601 N. Lamar Suite 201 in Austin (official website).
