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Senate Bill 17 |
Senate Author: Carona et al. |
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Effective: 9-1-11 |
House Sponsor: Truitt |
Senate Bill 17 amends the Finance Code to enact the Residential Mortgage Loan Servicer Registration Act to provide regulatory authority to ensure a registered residential mortgage loan servicer's compliance with state and federal law, rules, and regulations. The bill authorizes the Finance Commission of Texas to adopt and enforce rules necessary for the purposes of or to ensure compliance with that act. The bill requires a person, with certain exceptions, to register with the savings and mortgage lending commissioner before acting as a residential mortgage loan servicer, directly or indirectly, for a residential mortgage loan secured by a lien on residential real estate in Texas; sets out registration procedures and requirements, including requirements for the filing of an application and payment of a registration fee, the filing of a surety bond in the prescribed amounts, as applicable, and renewal requirements; and establishes grounds for revocation of a registration. The bill requires a registrant or a mortgage banker that acts as a residential mortgage loan servicer to provide to the borrower of each residential mortgage loan a specified notice informing the borrower where complaints may be directed, establishes the commissioner's powers and duties with regard to investigating and resolving a complaint concerning a registrant, and authorizes the commissioner to issue a cease and desist order under certain conditions against a person who is not registered or exempt under the Residential Mortgage Loan Servicer Registration Act to enforce compliance with that act and to impose an administrative penalty of up to $2,500 for each day of violation against a person who violates such an order. The bill also makes certain persons who service residential mortgage loans subject to registration as a mortgage banker and requires a mortgage banker that services residential mortgage loans to indicate in its registration that it acts as a residential mortgage loan servicer. The bill authorizes the commissioner or the commissioner's designee to participate in multi-state mortgage examinations as scheduled by the Conference of State Bank Supervisors Multi-State Mortgage Committee in accordance with Conference of State Bank Supervisors protocol.