SRC-TBR H.B. 1493 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 1493
By: Wise (Staples)
Business & Commerce
5/2/2001
Engrossed


DIGEST AND PURPOSE 

The Texas Savings and Loan Department (department) protects the depositors
of Texas by ensuring the sage and sound operation of state-chartered
savings institutions.  In 1999, the legislature also gave the department
the responsibility for licensing mortgage brokers. H.B. 1493 amends the
Mortgage Broker License Act regarding provisional licenses for and
inspection of mortgage brokers and loan officers. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Finance Commission in
SECTION 1 (Section 156.105, Finance Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 156B, Finance Code, by adding Section 156.105,
as follows: 

Sec. 156.105.  STANDARD FORMS.  (a)  Requires the finance commission, by
rule, to adopt one or more standard forms for use by a mortgage broker or
loan officer in representing that an applicant for a mortgage loan is
preapproved or has prequalified for the loan. 

(b)  Requires the finance commission to adopt rules requiring a mortgage
broker or loan officer licensed under this chapter to use the forms adopted
by the finance commission under Subsection (a). 

SECTION 2.  Amends Section 156.206(b), Finance Code,  to require the
commissioner to obtain criminal history record information on an applicant
that is maintained by the Department of Public Safety and to obtain
criminal history record, rather than background, information on an
applicant maintained by the Federal Bureau of Investigation. 

SECTION 3.  Amends Chapter 156C, Finance Code, by adding Section 156.213,
as follows: 

Sec. 156.213.  ANNUAL REPORT.  (a)  Requires each licensed mortgage broker
to file an annual report with the commissioner on a form prescribed by the
commissioner.  Requires the report to include certain information. 

(b)  Provides that information contained in the annual report related to
loan origination volume or other trade information is confidential and may
not be disclosed by the commissioner or any other employee of the Savings
and Loan Department. 

SECTION 4.  Amends Section 156.302(e), Finance Code, to provide that an
appeal of an administrative penalty under this section is considered to be
a contested case under Chapter 2001, Government Code. 

SECTION 5.  Requires the Finance Commission of Texas to adopt, that not
later than January 1,  2002, adopt the standard forms and rules required by
Section 156.105, Finance Code, as added by this Act. 

SECTION 6.  Effective date: September 1, 2001.