By: Coleman H.B. No. 2279 73R5386 CAE-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the registration of mortgage bankers and a reporting 1-3 requirement regarding mortgage loans for financial institutions and 1-4 mortgage bankers; providing a penalty. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Title 16, Revised Statutes, is amended by adding 1-7 Articles 351 and 352 to read as follows: 1-8 Art. 351. REGISTRATION OF MORTGAGE BANKERS 1-9 Sec. 1. DEFINITIONS. In this article: 1-10 (1) "Commissioner" means the banking commissioner. 1-11 (2) "Department" means the Banking Department of 1-12 Texas. 1-13 (3) "Mortgage banker" means a person in the business 1-14 of making mortgage loans in this state. The term does not include 1-15 an individual who solicits, places, processes, or negotiates a 1-16 mortgage loan solely as an employee of a mortgage banker. 1-17 (4) "Mortgage loan" means an interest-bearing 1-18 obligation secured by residential real property in this state. 1-19 (5) "Person" includes a corporation, organization, 1-20 business trust, estate, trust, partnership, association, and any 1-21 other legal entity. The term does not include a government or a 1-22 governmental subdivision or agency. 1-23 Sec. 2. EXEMPTIONS. This article does not apply to: 1-24 (1) a state or federal bank; 2-1 (2) a state or federal savings and loan association; 2-2 or 2-3 (3) a state or federal credit union. 2-4 Sec. 3. REGISTRATION REQUIRED. A mortgage banker may not 2-5 make a mortgage loan in this state unless the person has registered 2-6 with the department under this article and paid a registration fee 2-7 as required by rule of the commissioner. 2-8 Sec. 4. REGISTRATION FEE. The commissioner by rule shall 2-9 set the registration fee required under this article in an amount 2-10 necessary to cover the costs of administering this article. 2-11 Art. 352. REPORT ON MORTGAGE LOANS BY FINANCIAL INSTITUTIONS 2-12 AND MORTGAGE BANKERS 2-13 Sec. 1. DEFINITIONS. In this article: 2-14 (1) "Branch office" means an office of a financial 2-15 institution that is approved as a branch by a federal or state 2-16 regulating agency, but does not include an unmanned teller machine 2-17 as defined by Article 3a, Chapter IX, The Texas Banking Code 2-18 (Article 342-903a, Vernon's Texas Civil Statutes), and its 2-19 subsequent amendments. 2-20 (2) "Financial institution" means a state or national 2-21 bank, state or federal savings and loan association, or state or 2-22 federal credit union in this state. 2-23 (3) "Mortgage banker" has the meaning assigned by 2-24 Article 351, Revised Statutes, and its subsequent amendments. The 2-25 term does not include a financial institution. 2-26 (4) "Mortgage loan" has the meaning assigned by 2-27 Article 351, Revised Statutes, and its subsequent amendments. 3-1 Sec. 2. REPORT REQUIRED. (a) Each year a financial 3-2 institution or mortgage banker shall submit a report of its 3-3 mortgage loans for the previous calendar year. 3-4 (b) A bank or mortgage banker shall submit the report to the 3-5 banking commissioner, a savings and loan association shall submit 3-6 the report to the savings and loan commissioner, and a credit union 3-7 shall submit the report to the credit union commissioner. 3-8 (c) A report submitted as required by this section must 3-9 provide separate information on each branch office, except that 3-10 branch offices located in a single municipality or in a single 3-11 county may be reported together. 3-12 (d) A report under this article is public information. 3-13 Sec. 3. INFORMATION REQUIRED. A report under this article 3-14 must include for the calendar year that it covers: 3-15 (1) the number and total dollar amount of mortgage 3-16 loans or home improvement loans that: 3-17 (A) were made by the financial institution or 3-18 mortgage banker and for which it received completed applications; 3-19 or 3-20 (B) were purchased by the financial institution 3-21 or mortgage banker; and 3-22 (2) the number and dollar amount of each of the 3-23 mortgage loans it made and the completed applications for mortgage 3-24 loans it received presented by census tract, income level, racial 3-25 characteristics, and sex. 3-26 Sec. 4. FORM OF REPORT; FINANCE COMMISSION DUTIES. A report 3-27 under this article must be submitted on a uniform form prescribed 4-1 by The Finance Commission of Texas. The finance commission may 4-2 adopt rules to define terms not defined by this article and to 4-3 provide for the administration of this article. 4-4 Sec. 5. DUE DATE OF REPORT; RECORDKEEPING. (a) A financial 4-5 institution or mortgage banker shall submit the required report not 4-6 later than January 30 and shall retain a copy of the report for its 4-7 records for at least five years. 4-8 (b) A financial institution or mortgage banker shall make 4-9 the report available to the public not later than the 30th day 4-10 after the date the report is submitted to the appropriate 4-11 commissioner. The report shall be available to the public for five 4-12 years at the financial institution's or mortgage banker's home 4-13 office. If a financial institution has a branch office in another 4-14 county, a report must also be available in that county. The report 4-15 at the branch office may include only information relating to 4-16 mortgage loans in the county where that branch office is located. 4-17 Sec. 6. PENALTY. If the banking commissioner in the case of 4-18 a banking association or mortgage banker, the savings and loan 4-19 commissioner in the case of a savings and loan association, or the 4-20 credit union commissioner in the case of a credit union finds that 4-21 a financial institution or mortgage banker has violated this 4-22 article or a rule adopted under this article, the commissioner may 4-23 order the institution to pay a civil penalty. The amount of a 4-24 civil penalty under this section may not exceed $5,000 for each day 4-25 the violation continues. A penalty collected under this section 4-26 shall be deposited in the state treasury. The Finance Commission 4-27 of Texas may adopt rules as necessary to carry out this section. 5-1 Sec. 7. SUMMARY OF REPORTS. (a) The banking commissioner 5-2 for banks and mortgage bankers, the savings and loan commissioner 5-3 for savings and loan associations, and the credit union 5-4 commissioner for credit unions shall prepare a summary of all the 5-5 reports submitted to that commissioner. The banking commissioner 5-6 shall prepare a separate summary for banks and for mortgage 5-7 bankers. 5-8 (b) A summary prepared under this section shall be submitted 5-9 to the governor, lieutenant governor, speaker of the house of 5-10 representatives, and appropriate senate and house standing 5-11 committees not later than April 1 of each year. 5-12 SECTION 2. (a) This Act takes effect September 1, 1993. 5-13 (b) The first report required to be filed under Article 352, 5-14 Revised Statutes, as added by this Act, shall be filed not later 5-15 than February 1, 1994, and shall cover the 1993 calendar year. 5-16 SECTION 3. The importance of this legislation and the 5-17 crowded condition of the calendars in both houses create an 5-18 emergency and an imperative public necessity that the 5-19 constitutional rule requiring bills to be read on three several 5-20 days in each house be suspended, and this rule is hereby suspended.