2026 Texas Mortgage Rule Changes: What Private Lenders Must Know
Texas rewrote its entire residential mortgage-servicer rulebook in late 2024, and the last operational piece of that change, the electronic surety bond, lands January 1, 2026. For most private lenders this is housekeeping, not upheaval, but a few things are worth verifying before the year-end compliance pass.
The SML did its reorganizing in 2024, the bond mechanic catches up in 2026, and SB 43 has been steady since 2022. Use the calm to clean up your file room.
The short version
- November 23, 2024: the SML moved its servicer rules from 7 TAC Chapters 78-81 into the new Chapters 55-59 (mostly structural, but renumbered, with tightened recordkeeping).
- January 1, 2026: the §58.107 electronic surety bond becomes the default; paper bonds are phased out.
- Since 2022: SB 43 / Chapter 159 governs wraparound originations (RMLO licensing plus disclosures), unchanged in substance but renumbered around the edges.
- For lenders, the to-do is mostly verification: bond status, current rule cites, and clean files.
What the 2024 reorganization did
The Finance Commission consolidated rules that had sprawled across several chapters into a cleaner hierarchy:
| Chapter | Covers |
|---|---|
| 55 | Definitions and applicability |
| 56 | Application, licensing, and registration |
| 57 | Servicer conduct standards |
| 58 | Bonding, fees, and financial responsibility (where §58.107 sits) |
| 59 | Examinations, enforcement, and discipline |
For most servicers the substantive obligations did not change; the citation chase did. Any materials still citing the old §78.x or §80.x numbers predate the update and should be refreshed to the Chapters 55-59 cites.
The §58.107 electronic surety bond
The biggest operational change for 2026 is the electronic surety bond. Paper filings are phased out and the bond is tracked through NMLS instead. For most servicers the conversion is mechanical: identify the current bond, have the surety issue an electronic one through NMLS, and retire the paper instrument before January 1, 2026. The one pitfall is timing, since some sureties need lead time, so if you have not started, start now. If you self-service and are exempt from SML registration, the rule does not apply to you.
SB 43 / Chapter 159 in the same window
SB 43 is not a 2026 rule; it took effect in 2022. It matters here for two reasons. First, the 2024 reorganization renumbered adjacent rules, so any compliance materials cross-referencing them need updating. Second, wrap origination is still one of the highest-risk Texas private-lender activities: most residential wrap originators must hold an active RMLO license under Chapter 180, and the federal three-property exemption does not waive Texas licensing. If you wrote a wrap on the assumption that it did, have a Texas attorney look at the file.
What to do in Q4
- Confirm your servicer is on the new chapter numbers. Current materials should cite Chapters 55-59, not §78.x or §80.x.
- Verify your surety bond. A registered Texas servicer's bond should already be electronic through NMLS, or have a confirmed plan to convert before January 1, 2026.
- Pull the NMLS Consumer Access record for any servicer you use: license type, status, and disciplinary history. It takes thirty seconds.
- For wraps: confirm your RMLO chain and your Chapter 159 disclosures, and have an attorney review any wrap originated on the federal exemption alone.
- Check your files against the tightened recordkeeping standard: complete notes, deeds of trust, payment histories, escrow ledgers, and correspondence.
If you need to switch servicers
Moat is a Texas-registered servicer (NMLS 1419346) and carries the §58.107 electronic surety bond. Switching is straightforward: a single $150 setup per loan, and the federal transfer process runs a 30-to-45-day window. See Switching Mortgage Servicers in Texas, Texas SML Licensing, and Texas RMLO Requirements.
On the federal side
The CFPB has not finalized major new servicer rules in the 2024-2026 window that would override Texas. It has kept up enforcement on RESPA periodic statements and the 120-day pre-foreclosure rule. The federal small-servicer exemption remains available to many private-lender servicers, but the lines are narrow and the consequences of crossing them are real.
This post is general information about the Texas SML 2024 reorganization, the 7 TAC §58.107 electronic surety bond rule effective January 1, 2026, and SB 43 / Tex. Finance Code Chapter 159. It is not legal advice. Whether the §58.107 rule applies to your specific operation, and whether any exemption holds, depends on the facts of your business; consult a Texas regulatory attorney before relying on an exemption. Moat Note Servicing, LLC (NMLS 1419346) is a Texas-registered residential mortgage loan servicer (Finance Code Ch. 158) based in San Antonio, Texas.