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 comply with a new reporting requirement. This change is outlined under 7 Texas Administrative Code (TAC) §§ 56.205 for mortgage companies and 57.205 for mortgage bankers.
The updated requirement applies to both mortgage companies—including those operating as independent contractor loan processor and underwriter firms—and mortgage bankers that indicate in the Nationwide Multistate Licensing System (NMLS) they are engaged in third-party mortgage loan processing or underwriting.
As part of the Mortgage Call Report (MCR) submission process through NMLS, affected 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, which is scheduled for release in April 2026. The form collects state-specific data not included in the general MCR.
Licensees or registrants are required to fill out the Licensed Processors and Underwriters section of the SSSF, which includes fields SF600 through SF660. These fields track various actions taken on applications during each period, such as applications received, processed, returned incomplete, changes to application amounts, other changes directed by third parties, completed applications returned to creditors, and outstanding applications at quarter’s end.
For companies engaging in third-party processing or underwriting in Texas, next steps include reviewing their NMLS business activity designations to ensure accuracy in MU1 filings, preparing to complete the SSSF for Q1 2026 MCR filings, and training internal teams on these new requirements.
Additional information about this new reporting requirement can be found at the NMLS Resource Center and by reviewing the full text of 7 TAC §56.205 and §57.205.
The Department of Savings and Mortgage Lending oversees this regulatory update. The agency operates under the oversight of the Finance Commission of Texas (official website) and serves as an agency responsible for chartering, regulating, and supervising Texas’s thrift and mortgage sectors (official website). It regulates activities within Texas covering most residential mortgage lending (official website), overseeing more than $290 billion in assets across state-chartered savings banks as well as over 42,000 residential mortgage loan originators and more than 4,600 related entities (official website). Established as a state agency in 1961 (official website), its mission is to protect depositors, creditors, and borrowers while upholding ethical standards (official website).
For questions regarding filing requirements for either SSSF or MCRs generally, industry participants are encouraged to contact the Department directly.
