1-1                                   AN ACT
 1-2     relating to the regulation of mortgage brokers.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subchapter B, Chapter 156, Finance Code, is
 1-5     amended by adding Section 156.105 to read as follows:
 1-6           Sec. 156.105.  STANDARD FORMS.  (a)  The finance commission,
 1-7     by rule, shall adopt one or more standard forms for use by a
 1-8     mortgage broker or loan officer in representing that an applicant
 1-9     for a mortgage loan is preapproved or has prequalified for the
1-10     loan.
1-11           (b)  The finance commission shall adopt rules requiring a
1-12     mortgage broker or loan officer licensed under this chapter to use
1-13     the forms adopted by the finance commission under Subsection (a).
1-14           SECTION 2.  Section 156.206(b), Finance Code, is amended to
1-15     read as follows:
1-16           (b)  The commissioner shall obtain criminal history record
1-17     information on an applicant that is maintained by the Department of
1-18     Public Safety and shall[.  By rule, the commissioner may require
1-19     applicants to submit information and fingerprints necessary for the
1-20     commissioner to] obtain criminal history record [background]
1-21     information on an applicant maintained by [from] the Federal Bureau
1-22     of Investigation.  The commissioner may also obtain criminal
1-23     history record information from any court or any local, state, or
1-24     national governmental agency.
 2-1           SECTION 3.  Subchapter C, Chapter 156, Finance Code, is
 2-2     amended by adding Section 156.213 to read as follows:
 2-3           Sec. 156.213.  ANNUAL REPORT.  (a)  Each licensed mortgage
 2-4     broker shall file an annual report with the commissioner on a form
 2-5     prescribed by the commissioner.  The report must include:
 2-6                 (1)  data on loan origination in this state for the
 2-7     mortgage broker and each loan officer sponsored by the mortgage
 2-8     broker; and
 2-9                 (2)  any other information required by the
2-10     commissioner.
2-11           (b)  Information contained in the annual report related to
2-12     loan origination volume or other trade information is confidential
2-13     and may not be disclosed by the commissioner or any other employee
2-14     of the Savings and Loan Department.
2-15           SECTION 4.  Section 156.302(e), Finance Code, is amended to
2-16     read as follows:
2-17           (e)  An appeal of an administrative [A proceeding to impose
2-18     the] penalty under this section is considered to be a contested
2-19     case under Chapter 2001, Government Code.
2-20           SECTION 5.  Not later than January 1, 2002, the Finance
2-21     Commission of Texas shall adopt the standard forms and rules
2-22     required by Section 156.105, Finance Code, as added by this Act.
2-23           SECTION 6.  This Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 1493 was passed by the House on April
         25, 2001, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 1493 was passed by the Senate on May
         15, 2001, by the following vote:  Yeas 30, Nays 0, 1 present, not
         voting.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor