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All states · Filled 2026-09-17

Texas mortgage advertising rules

Adline flags phrases that match cited rules. It does not certify that Texas marketing is compliant. We flag and cite. We never certify. This is not legal advice. Whether a rule reaches you depends on your license type. Federal Reg Z and Reg N still apply.

Scanner status: Index only. The engine cites Washington, Arizona, and Idaho only. This page is an index of retrieved text. The engine does not emit a Texas citation.

7 TAC ch. 80 and 81 were repealed

Effective 23 November 2024, 7 TAC chapters 80 and 81 were repealed and replaced by chapters 55, 56, and 57. The live advertising rule is 7 TAC 56.203(c). Anyone citing 80.200 is citing nothing.

SML and OCCC disagree on lowest rates

SML has no enumerated superlative ban. OCCC 7 TAC 83.853(d)(1) treats lowest costs and lowest rates as misleading for ch. 342 licensees. License type is a second axis.

HIGH-PRIORITY STATE. Read the rule-renumbering warning in §2 before using any pre-2025 Texas citation.

Regulating agency

Texas Department of Savings and Mortgage Lending

Last verified 2026-09-17.

Texas Department of Savings and Mortgage Lending (SML). self-identified as "SML" throughout its current rules. Commissioner: Hector Retta. Address of record in the required consumer notice: 2601 N. Lamar Blvd., Suite 201, Austin, Texas 78705.

Second regime regulator: Office of Consumer Credit Commissioner (OCCC).

NMLS and license display: Conjunctive.

Governing statute and administrative code

Last verified 2026-09-17.

  • [STATUTE] Tex. Fin. Code ch. 156 (mortgage companies / residential mortgage loan companies) and ch. 157 (mortgage bankers), plus ch. 180 (SAFE Act), ch. 159, ch. 343.
  • [REGULATION] 7 TAC ch. 80 and ch. 81 WERE REPEALED effective 11/23/2024. Any matrix entry citing 7 TAC §80.200, §80.201, §81.200, or §81.201 is stale and wrong as of today.
  • Cornell LII carries 7 Tex. Admin. Code §80.200 as "[Repealed] … Repealed by Texas Register, Volume 49, Number 46, November 15, 2024, TexReg 9223, eff. 11/23/2024."
  • Current chapters, confirmed against SML's own "Laws and Regulations" page, which links the Texas Secretary of State TAC portal for each:
  • 7 TAC ch. 55. Residential Mortgage Loan Originators
  • 7 TAC ch. 56. Mortgage Companies (successor to much of ch. 80)
  • 7 TAC ch. 57. Mortgage Bankers (successor to much of ch. 81)
  • 7 TAC ch. 58 and ch. 59. also linked by SML
  • Each adopted by Texas Register, Volume 49, Number 46, November 15, 2024, TexReg 9210, eff. 11/23/2024.
  • Second regime (OCCC): Tex. Fin. Code ch. 342 (regulated lenders, including Subchapter G secondary mortgage loans) and ch. 341; [REGULATION] 7 TAC ch. 83, Subchapter A (Rules for Regulated Lenders), Divisions 10 and 11. The OCCC advertising rules are materially stricter on superlatives than SML's. see §4.

License and NMLS ID display

Verified

Regulation. Guidance is not law.

Last verified 2026-09-17.

Required. CONJUNCTIVE. Mortgage companies (7 TAC §56.203(c)); the ch. 57 analogue for mortgage bankers is §57.203.

"(c) Required Content. Except as provided by subsections (d) and (e) of this section, an advertisement must contain: (1) the mortgage company's name and NMLS ID; (2) the mortgage company's website address, if it has a website; and (3) the sponsored originator's name and NMLS ID." — 7 TAC §56.203(c) [REGULATION]

Four elements, joined by "and," all required together: company name + company NMLS ID + company website address (conditional on having one) + originator name + originator NMLS ID.

Two carve-outs, both narrow:

"(d) … The requirements of subsection (c)(3) of this section do not apply to an advertisement made directly by a mortgage company." — i.e. a company-level ad with no named originator drops element (3) only; elements (1) and (2) still apply.
"(e) Advertising on Social Media Sites. If the mortgage company or sponsored originator advertises on a social media site, the requirements of subsection (c) of this section may be met by prominently displaying the required information on the home page, profile page, or similar, on such social media site so that the viewer can quickly discern the information without reviewing various historical content…" — 7 TAC §56.203(e) [REGULATION]

Definition of "advertisement" is unusually broad and explicitly captures social posts:

"'Advertisement' means a commercial message in any medium that promotes, directly or indirectly, a residential mortgage loan transaction or is otherwise designed to solicit residential mortgage loan origination business… The term includes 'flyers,' business cards, or other handouts, and messages or posts made on a social media site." — 7 TAC §56.203(a)(1)

Three exclusions from "advertisement": (A) nominal-value promotional items bearing only the name and (at most) a website address. cups, pens, shirts, company uniforms, sponsored youth league jerseys; (B) rate sheets or pricing sheets given to realtors/builders and not intended for consumer distribution; (C) signs on or adjacent to the licensed office under §56.206.

Prohibited claims

Verified

Regulation. Guidance is not law.

Last verified 2026-09-17.

Under SML rules (ch. 56/57): there is no enumerated ban on "lowest," "best," "cheapest," "guaranteed," "pre-approved," "free," "no cost," or "government." SML instead routes superlative and deceptive claims through a fraudulent-practices rule and federal law:

"(b) Compliance with Federal Law. A mortgage company or sponsored originator that advertises rates, terms, or conditions must comply with the requirements of Regulation N (12 C.F.R. §1014.1 et seq.), and Regulation Z (12 C.F.R. §1026.24)." — 7 TAC §56.203(b) [REGULATION]

7 TAC §56.202 [REGULATION] enumerates conduct that "constitutes fraudulent and dishonest dealings for purposes of Finance Code §156.303(a)(3)," including:

"(2) knowingly misrepresenting or understating any cost, fee, interest rate, or other expense to a mortgage applicant or prospective mortgage applicant…"

and, notably for lead-based marketing:

"(9) using a trigger lead in a misleading or deceptive manner by, among other things: (A) failing to state in the initial communication with the consumer: (i) the mortgage company's name; (ii) a brief explanation of how the mortgage company obtained the consumer's contact information (i.e., an explanation of trigger leads); (iii) that the mortgage company is not affiliated with the creditor to which the consumer made the credit application…; and (iv) that the purpose of the communication is to solicit new business…" — 7 TAC §56.202(a)(9)

§56.202(b)(3) also makes it "improper dealings" to solicit by phone a consumer on the FTC national do-not-call registry outside the TSR exception.

Under OCCC rules (ch. 83). express superlative ban. This binds Finance Code ch. 342 licensees, which includes Subchapter G secondary mortgage loans:

"(d) It will be considered misleading: (1) to use phrases such as 'lowest costs,' 'lowest rates,' 'quickest service,' 'easy payments,' or 'repayment in easy installments';" — 7 TAC §83.853(d)(1) [REGULATION]

Attaches to: costs, rates, service speed, and payment ease. i.e. broader than rates-or-fees alone. Same rule also bars:

"(b) A licensee may not use blind loan advertisements that give only telephone numbers or addresses." "(d)(5) for any licensee other than a lawfully chartered banking institution to use the word 'bank,' or any derivative, in any advertisement wherein its use might mislead the public…" "(a) … Every advertisement must state or clearly indicate the identity of the licensee, and in such a manner as to prevent confusion with the name of any other unrelated licensee."

§83.853(d)(2) caps comparative "new reduced rates"/"new type of service" claims: the change must be "of more than minor importance" and "Any such advertisement must not be used for a period longer than 60 days after the plan has been put into effect."

Permitted agency-name usage is expressly defined for OCCC licensees:

"It will be permissible for a licensee of the OCCC to publicly display or advertise the following or a substantially similar statement: 'This office is licensed and examined by the Office of Consumer Credit Commissioner of the State of Texas.'" — 7 TAC §83.856 [REGULATION]

Rate advertising

Verified

Statute. Guidance is not law.

Last verified 2026-09-17.

SML: no Texas-specific rate rule beyond the §56.203(b) incorporation of Reg N and Reg Z §1026.24. No state rate-sheet retention requirement (contrast Washington).

OCCC: §83.853(c) supplies the interpretive standard for Finance Code §341.403 —

"the general arrangement of copy and statements or representations made will be considered to determine if the inference or impression may reasonably be drawn that the statements or representations are inaccurate, deceptive, or misleading."

Required consumer-complaint notice

Last verified 2026-09-17.

Texas requires two distinct notices. Only the second is an advertising/website obligation.

(a) Notice to applicant. 7 TAC §56.200(b) [REGULATION]. Delivered at application, not in advertising:

"A mortgage company must send written notice to a mortgage applicant concerning SML's regulatory oversight. The notice must be sent at the time the mortgage company and its sponsored originator receives the initial application for a residential mortgage loan… The notice must be in the form adopted by this subsection."

Delivery must be by a means that lets the company "capture and maintain records reflecting timely delivery, as required by §56.204(c)(2)(A)(iv)." The form may be modified only by adding transaction-identifying information that is not misleading and does not contradict the disclosure. *The figure's verbatim text is NOT VERIFIED: SML's published PDF of this form uses a broken embedded font map and did not extract to reliable characters. Do not publish its wording from this batch.*

(b) Posted notice on websites. 7 TAC §56.200(c) [REGULATION]. THIS IS THE ADVERTISING-FACING ONE.

Placement rule, verbatim:

"A mortgage company must post a notice concerning SML's regulatory oversight on each website of the mortgage company, other than a social media site, that is accessible by a mortgage applicant or prospective mortgage applicant and either used to conduct residential mortgage loan origination business or from which the mortgage company advertises to solicit such business, as provided by §56.203 of this title (relating to Advertising). The notice must be in the current form prescribed by SML and posted on its website (sml.texas.gov). The notice must be displayed on the initial or home page of the website (typically the base-level domain name) or contained in a linked webpage with the link to such webpage displayed on the initial or home page." — 7 TAC §56.200(c)

Exact required text. MORTGAGE COMPANY version, extracted verbatim from SML's own prescribed form (figure header on the form reads "Figure: 7 TAC §56.200(c)"):

TEXAS RESIDENTS: CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A MORTGAGE COMPANY OR RESIDENTIAL MORTGAGE LOAN ORIGINATOR LICENSED IN TEXAS SHOULD SEND A COMPLETED COMPLAINT FORM TO THE DEPARTMENT OF SAVINGS AND MORTGAGE LENDING (SML): 2601 N. LAMAR BLVD., SUITE 201, AUSTIN, TEXAS 78705; TEL: 1-877-276-5550. INFORMATION AND FORMS ARE AVAILABLE ON SML'S WEBSITE: SML.TEXAS.GOV.

Exact required text. MORTGAGE BANKER version (figure header: "Figure: 7 TAC §57.200(c)"):

TEXAS RESIDENTS: CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A MORTGAGE BANKER OR RESIDENTIAL MORTGAGE LOAN ORIGINATOR LICENSED IN TEXAS SHOULD SEND A COMPLETED COMPLAINT FORM TO THE DEPARTMENT OF SAVINGS AND MORTGAGE LENDING (SML): 2601 N. LAMAR BLVD., SUITE 201, AUSTIN, TEXAS 78705; TEL: 1-877-276-5550. INFORMATION AND FORMS ARE AVAILABLE ON SML'S WEBSITE: SML.TEXAS.GOV.

The two differ by exactly one phrase: "A MORTGAGE COMPANY" vs. "A MORTGAGE BANKER." Both are rendered in full capitals on SML's form.

Three points a compliance officer will get wrong: 1. Social media sites are expressly carved OUT of the §56.200(c) website-posting duty. The rule says "each website … other than a social media site." A Facebook business page does not need this notice; the company's own marketing microsite does. 2. The notice follows advertising, not just origination. A website that merely "advertises to solicit such business" triggers the posting duty even if no application is taken there. Landing pages and lead-capture pages are in scope. 3. Home page or one click from home page. A notice buried in a footer legal hub with no home-page link does not satisfy the rule as written. 4. The current SML form governs, not the rule text. §56.200(c) says the notice "must be in the current form prescribed by SML and posted on its website." SML can change the wording without a rulemaking. The forms above were downloaded 2026-09-17 and SML's page metadata shows "Last Updated December 6, 2024." Build a periodic re-check against sml.texas.gov, not a hardcoded string. 5. The file name is misleading. SML's download slugs are "mortgage-company-complaint-recovery-fund-notice" and "mortgage-banker-complaint-recovery-fund-notice," but the current §56.200(c) text is a complaint notice only. it contains no recovery-fund claim language. The recovery-fund claim language appears in the separate §56.200(b) applicant notice. Do not assume the website notice still carries recovery-fund wording.

Ad filing, prior approval, retention

Verified

Regulation. Guidance is not law.

Last verified 2026-09-17.

  • No filing or prior approval required.
  • Retention. advertising is expressly enumerated, in native format:

> "(7) all advertisements in the medium (e.g., recorded audio, video, Internet or social media site posting, or print) in which they were published or distributed;" >. 7 TAC §56.204 [REGULATION] > "(4) Retention Period. All records required by this section must be maintained for 3 years or such longer period as may be required by other applicable law." >. 7 TAC §56.204

  • On termination of operations, written notice to SML within 10 days of where records will be kept; a transferee licensee must notify SML within 10 days of receipt.
  • The "in the medium in which they were published" language means a PDF screenshot of a video ad is not compliant retention. Texas wants the artifact.
  • Correspondence disclosure (separate from advertising): "All correspondence sent to a mortgage applicant must include: (1) the mortgage company's name and NMLS ID; and (2) the mortgage company's website address, if it has a website.". §56.200(d).

Social media and character-limited media

Verified

Statute. Guidance is not law.

Last verified 2026-09-17.

Texas has the most developed social-media treatment in this batch, all in binding regulation rather than guidance:

  • Social posts are within the definition of "advertisement". §56.203(a)(1).
  • Abbreviated-disclosure accommodation: §56.203(e) lets the required identifiers live on the home/profile page "so that the viewer can quickly discern the information without reviewing various historical content posted by the mortgage company or sponsored originator." This is Texas's answer to character-limited media. it is a *placement* accommodation, not a content waiver.
  • Social media sites are excluded from the §56.200(c) complaint-notice posting duty.
  • Social posts must be retained in native format for 3 years. §56.204.

Anything unusual

Last verified 2026-09-17.

  • Team names and team logos are separately regulated. 7 TAC §56.203(f). This is rare and very enforcement-relevant:

> "(1) Team names and team logos are permitted for advertising purposes only. A team name or team logo may not be used to conduct residential mortgage loan origination business. For clarity, a team name or team logo may not appear on any documentation sent to the mortgage applicant … or on any documentation in the residential mortgage loan file…" > "(2) The mortgage company's legal name or an assumed name … and its NMLS ID must be used with the team name or team logo, in substantially equivalent prominence, and must be connected with an explanatory word or phrase that clearly links the two (e.g., '(team name) of (mortgage company name and NMLS ID)' or '(team name) powered by (mortgage company name and NMLS ID)')… The mortgage company may not obscure the information by, among other things, using graphics, shading, or coloration to deemphasize or mask the appearance of the mortgage company's name and NMLS ID." > "(3) If a team logo is used, it must be used with the team name, unless the team name is contained in the team logo…"

  • The 2024 renumbering itself. Any vendor rule library still pointing at 7 TAC ch. 80/81 is serving repealed law. This is the single highest-value correction in this batch.
  • Two regimes with opposite superlative rules. SML has no enumerated superlative ban; OCCC expressly deems "lowest costs" and "lowest rates" misleading. A lender holding both an SML mortgage company license and an OCCC regulated-lender license faces the stricter OCCC standard on its ch. 342 products.
  • Fee-splitting/rebate bar. §56.202(d) bars sharing or rebating origination fees with the applicant except as Reg X §1024.14 / Reg Z §1026.36(d) allow. Closing-cost-credit marketing needs care.

Penalties

Not yet verified

Last verified 2026-09-17.

NOT VERIFIED for dollar amounts. Tex. Fin. Code §156.303(a)(3) is the operative disciplinary hook and is cited by name inside the regulation text Retrieved (7 TAC §56.202 repeatedly states that the listed conduct "constitutes fraudulent and dishonest dealings for purposes of Finance Code §156.303(a)(3)"), so the citation is sound. However, statutes.capitol.texas.gov serves Texas Finance Code text only through client-side JavaScript; eight distinct fetch paths (Docs/, sdocs/, SOTWDocs/, word/, the legacy statutes.legis.state.tx.us host, and three API guesses) all returned the SPA shell with no statutory text. I therefore make no claim about the administrative-penalty amount under §156.302 or any per-violation figure. Do not publish a Texas penalty number from this batch.

Sources

Last verified 2026-09-17. Official means the legislature, the official administrative-code publisher, or the regulator. Reproduction is not the official publisher.