Beginning in the first quarter of 2026, Texas residential mortgage loan companies and mortgage bankers employing independent loan processors and underwriters will be subject to a new reporting requirement. This change is based on rules outlined in 7 Texas Administrative Code (TAC) §§ 56.205 for mortgage companies and 57.205 for mortgage bankers.
The new requirement applies to entities that indicate, or should indicate, on the Nationwide Multistate Licensing System (NMLS) that they engage in third-party mortgage loan processing or underwriting. Both mortgage companies—including those with independent contractor processors and underwriters—and mortgage bankers are affected.
As part of the Mortgage Call Report (MCR) process submitted via NMLS, these organizations must now complete the “Licensed Processors and Underwriters” section of the State-Specific Supplemental Form (SSSF). The SSSF was first introduced as an additional component of the MCR with Form Version 6 in April 2024, and will continue with Form Version 7 set for release in April 2026. The form gathers data specific to Texas not included in the general MCR.
Licensees are required to fill out various sections within this supplement, including details such as applications in process at both the beginning and end of each quarter, applications received during the quarter, incomplete applications returned due to non-responsive borrowers, changes to application amounts while under review, other directed changes by third parties, completed processed or underwritten applications returned for lending decisions, and more.
Companies engaging in third-party processing or underwriting in Texas are advised to review their business activity designations on NMLS and ensure accurate reflection within their MU1 filings. They should also prepare internal teams for compliance with these new reporting requirements as part of their Q1 2026 MCR filing.
Further information can be found through resources provided by NMLS or by reviewing the full text of applicable regulations. For questions regarding filing procedures, licensees may contact state authorities directly.
The Department of Savings and Mortgage Lending oversees this regulatory area as part of its broader role supervising state-chartered savings banks with assets exceeding $290 billion and regulating over 42,000 residential mortgage loan originators along with more than 4,600 related entities. The agency operates under the oversight of the Finance Commission of Texas (official website). Its mission includes protecting depositors, creditors, and borrowers while maintaining ethical standards (official website). Established in 1961 (official website), it is headquartered at 2601 N. Lamar, Suite 201, Austin (official website).
