Eligibility

Non-profit organizations, political subdivisions of Texas, auxiliary mortgage loan activity companies (see Appendix A, Definitions) licensed by SML, and mortgage loan servicers (see Appendix A) registered with SML that are non-profit organizations are eligible to apply for grant funding. Other than auxiliary mortgage loan activity companies and mortgage loan servicers that are non-profit organizations, eligibility is not open to any other entities licensed by or registered with SML.

Applicants for a grant must establish goals that demonstrate how their proposed grant activities align with the purpose of the MGF grant program. Goals approved for funding are included in the grant agreement governing the grant award. Prohibited and permissible uses of MGF grant funds are specified in the grant agreement. Activities that align with the purpose of the MGF grant program include, but are not limited to:

  1. Education that helps Texans understand the benefits and potential drawbacks of home ownership;
  2. Educating Texans about the different mortgage loan types (e.g., conventional (conforming loans), FHA, VA, and USDA), their eligibility requirements, and associated costs;
  3. Educating Texans about the typical criteria used to evaluate a consumer’s qualifications for a mortgage loan (e.g., credit score, debt-to-income, loan-to-value);
  4. Educating Texans about opportunities for financial assistance to obtain a mortgage loan (e.g., down payment assistance programs);
  5. Consumer credit counseling and financial coaching that improves the financial characteristics of Texas consumers to qualify for a mortgage loan, including budgeting and saving strategies, building credit, and improving credit scores; and
  6. Train-the-trainer programs relating to the above.

Eligibility Questions

Organizations that respond ‘No’ to all of the following eligibility questions meet the criteria to apply. However, meeting eligibility requirements does not guarantee selection or the awarding of grant funds.

  1. Does the organization hold a license or registration regulated by the Department of Savings and Mortgage Lending other than an auxiliary mortgage loan activity company license issued under Finance Code Chapter 156?
  2. Will any of the funds be used to create a new company or business venture?
  3. Will any of the funds be used to pay tuition or other expenses for a staff member to attend college or professional school?
  4. Will any of the funds be used to administer or deliver the program to persons who do not reside in Texas?
  5. Will the organization require the entire grant amount requested to sustain the program or business operations?
  6. Will any of the funds be used to purchase capital expenditures (e.g. real estate, or any item with a useful life of more than one year and valued over $5,000)?
  7. Does the organization object to or anticipate issues complying with the reporting requirements listed in the Mortgage Grant Administration Manual?
  8. In the past ten years, has any state or federal regulatory authority ever found that the organization violated state or federal Equal Employment Opportunity laws?
  9. Will any of the funds be used to support programs or activities that do not align with the purpose of the MGF identified in the Mortgage Grant Administration Manual?

Grant Award Amounts

  1. The Commissioner determines the funding available for each grant cycle.
  2. The aggregate award amount is determined by the Commissioner prior to each grant cycle.
  3. Grant awards per cycle range from $5,000 to $100,000

Reimbursement Requests

For a comprehensive overview of required reports and submission deadlines, please refer to the Mortgage Grant Administration Manual.

  1. MGF Semi-Annual Report: the Grantee must complete and submit a MGF Semi-Annual Report documenting all funded grant activities. The report is the mechanism by which reimbursement requests are made. The MGF Semi-Annual Report covers the following time periods for each grant year and has the following due dates:
    • January 1 through June 30, due no later than July 31; and
    • July 1 through December 31, due no later than January 31.
  2. Supporting documentation: the Grantee must submit legible supporting documentation for all expenditures with the submission of the MGF Semi-Annual Report. Examples of supporting documentation include but are not limited to:
    • Pay stubs covering the hours and days worked on MGF related activities during the reimbursement request period.
    • Dated and itemized invoices, receipts, and contracts indicating services were rendered and payment was made during the semi-annual reporting period.
  3. Other reports include but are not limited to: MGF Personnel Time Tracker, sign-in sheets/rosters, inventory reports, MGF budget or goal change requests, discrepancy reports, and pre- and post-program surveys.

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