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.