77R10456 JMG-F
By Wise H.B. No. 1493
Substitute the following for H.B. No. 1493:
By Wise C.S.H.B. No. 1493
A BILL TO BE ENTITLED
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 commissioner, by
1-7 rule, shall adopt one or more standard forms for use by a mortgage
1-8 broker or loan officer in representing that an applicant for a
1-9 mortgage loan is preapproved or has prequalified for the loan.
1-10 (b) The commissioner shall adopt rules requiring a mortgage
1-11 broker or loan officer licensed under this chapter to use the forms
1-12 adopted by the commissioner under Subsection (a).
1-13 SECTION 2. Section 156.206(b), Finance Code, is amended to
1-14 read as follows:
1-15 (b) The commissioner shall obtain criminal history record
1-16 information on an applicant that is maintained by the Department of
1-17 Public Safety and shall[. By rule, the commissioner may require
1-18 applicants to submit information and fingerprints necessary for the
1-19 commissioner to] obtain criminal history record [background]
1-20 information on an applicant maintained by [from] the Federal Bureau
1-21 of Investigation. The commissioner may also obtain criminal
1-22 history record information from any court or any local, state, or
1-23 national governmental agency.
1-24 SECTION 3. Section 156.207, Finance Code, is amended by
2-1 adding Subsection (d) to read as follows:
2-2 (d) If an applicant otherwise meets all requirements,
2-3 qualifications, and conditions for a license but the commissioner
2-4 has not received the criminal history record information from the
2-5 Federal Bureau of Investigation required by Section 156.206(b)
2-6 before the 61st day after the date the commissioner requested the
2-7 information, the commissioner shall issue a provisional license to
2-8 the applicant with an expiration date of not later than 60 days
2-9 after the date of issuance. The provisional license may be renewed
2-10 pending receipt of the criminal history record information. If the
2-11 criminal history record information is not received before the
2-12 181st day after the date the commissioner requested the information
2-13 and the applicant otherwise meets all other requirements,
2-14 qualifications, and conditions for a license, the commissioner
2-15 shall issue a license to the applicant under Subsection (a) or
2-16 (b). The commissioner shall adopt rules for the administration of
2-17 this subsection.
2-18 SECTION 4. Subchapter C, Chapter 156, Finance Code, is
2-19 amended by adding Section 156.213 to read as follows:
2-20 Sec. 156.213. ANNUAL REPORT. (a) Each licensed mortgage
2-21 broker shall file an annual report with the commissioner on a form
2-22 prescribed by the commissioner. The report must include:
2-23 (1) data on loan origination in this state for the
2-24 mortgage broker and each loan officer sponsored by the mortgage
2-25 broker; and
2-26 (2) any other information required by the
2-27 commissioner.
3-1 (b) Information contained in the annual report related to
3-2 loan origination volume or other trade information is confidential
3-3 and may not be disclosed by the commissioner or any other employee
3-4 of the Savings and Loan Department.
3-5 SECTION 5. Section 156.301, Finance Code, is amended to read
3-6 as follows:
3-7 Sec. 156.301. COMPLAINTS, [AND] INVESTIGATIONS, AND
3-8 INSPECTIONS. (a) On the signed written complaint of a person, the
3-9 commissioner shall investigate the actions and records of a person
3-10 licensed under this chapter if the complaint, or the complaint and
3-11 documentary or other evidence presented in connection with the
3-12 complaint, provides reasonable cause. The commissioner, before
3-13 commencing an investigation, shall notify a mortgage broker or loan
3-14 officer in writing of the complaint and that the commissioner
3-15 intends to investigate the matter.
3-16 (b) For reasonable cause, [Except as provided by Subsection
3-17 (a),] the commissioner at any time may investigate [not initiate an
3-18 investigation or other action against] a person licensed under this
3-19 chapter to determine whether the person is complying with this
3-20 chapter and applicable rules [on the basis of an anonymous
3-21 complaint regardless of whether the complaint is in writing]. The
3-22 commissioner may conduct an undercover or covert investigation only
3-23 if the commissioner, after due consideration of the circumstances,
3-24 determines that the investigation is necessary to prevent immediate
3-25 harm and to carry out the purposes of this chapter.
3-26 (c) The commissioner may conduct inspections of a person
3-27 licensed under this chapter, as the commissioner considers
4-1 necessary, to determine whether the person is complying with this
4-2 chapter and applicable rules. An inspection conducted under this
4-3 section includes the authority to inspect books, records,
4-4 documents, operations, and facilities of the license holder and
4-5 access to any documents required by rules adopted under this
4-6 chapter.
4-7 (d) The commissioner may share evidence of a criminal
4-8 activity gathered during an inspection or investigation conducted
4-9 under this section with a state or federal law enforcement agency.
4-10 [The commissioner may authorize an employee of the commissioner to
4-11 file a signed written complaint against a person licensed under
4-12 this chapter and to conduct an investigation if:]
4-13 [(1) a judgment against the person has been paid from
4-14 a recovery fund established under this chapter;]
4-15 [(2) the person holds a provisional license issued
4-16 under Section 156.207(c);]
4-17 [(3) the person is convicted of a criminal offense
4-18 that may constitute grounds for the suspension or revocation of the
4-19 license; or]
4-20 [(4) the person fails to honor a check issued to the
4-21 commissioner.]
4-22 SECTION 6. Section 156.302(e), Finance Code, is amended to
4-23 read as follows:
4-24 (e) An appeal of an administrative [A proceeding to impose
4-25 the] penalty under this section is considered to be a contested
4-26 case under Chapter 2001, Government Code.
4-27 SECTION 7. Not later than January 1, 2002, the savings and
5-1 loan commissioner shall adopt the standard forms and rules required
5-2 by Section 156.105, Finance Code, as added by this Act.
5-3 SECTION 8. This Act takes effect September 1, 2001.