1-1     By:  Wise, et al. (Senate Sponsor - Staples)          H.B. No. 1493
 1-2           (In the Senate - Received from the House April 26, 2001;
 1-3     April 27, 2001, read first time and referred to Committee on
 1-4     Business and Commerce; May 7, 2001, reported favorably by the
 1-5     following vote:  Yeas 7, Nays 0; May 7, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the regulation of mortgage brokers.
 1-9           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10           SECTION 1.  Subchapter B, Chapter 156, Finance Code, is
1-11     amended by adding Section 156.105 to read as follows:
1-12           Sec. 156.105.  STANDARD FORMS.  (a)  The finance commission,
1-13     by rule, shall adopt one or more standard forms for use by a
1-14     mortgage broker or loan officer in representing that an applicant
1-15     for a mortgage loan is preapproved or has prequalified for the
1-16     loan.
1-17           (b)  The finance commission shall adopt rules requiring a
1-18     mortgage broker or loan officer licensed under this chapter to use
1-19     the forms adopted by the finance commission under Subsection (a).
1-20           SECTION 2.  Section 156.206(b), Finance Code, is amended to
1-21     read as follows:
1-22           (b)  The commissioner shall obtain criminal history record
1-23     information on an applicant that is maintained by the Department of
1-24     Public Safety and shall[.  By rule, the commissioner may require
1-25     applicants to submit information and fingerprints necessary for the
1-26     commissioner to] obtain criminal history record [background]
1-27     information on an applicant maintained by [from] the Federal Bureau
1-28     of Investigation.  The commissioner may also obtain criminal
1-29     history record information from any court or any local, state, or
1-30     national governmental agency.
1-31           SECTION 3.  Subchapter C, Chapter 156, Finance Code, is
1-32     amended by adding Section 156.213 to read as follows:
1-33           Sec. 156.213.  ANNUAL REPORT.  (a)  Each licensed mortgage
1-34     broker shall file an annual report with the commissioner on a form
1-35     prescribed by the commissioner.  The report must include:
1-36                 (1)  data on loan origination in this state for the
1-37     mortgage broker and each loan officer sponsored by the mortgage
1-38     broker; and
1-39                 (2)  any other information required by the
1-40     commissioner.
1-41           (b)  Information contained in the annual report related to
1-42     loan origination volume or other trade information is confidential
1-43     and may not be disclosed by the commissioner or any other employee
1-44     of the Savings and Loan Department.
1-45           SECTION 4.  Section 156.302(e), Finance Code, is amended to
1-46     read as follows:
1-47           (e)  An appeal of an administrative [A proceeding to impose
1-48     the] penalty under this section is considered to be a contested
1-49     case under Chapter 2001, Government Code.
1-50           SECTION 5.  Not later than January 1, 2002, the Finance
1-51     Commission of Texas shall adopt the standard forms and rules
1-52     required by Section 156.105, Finance Code, as added by this Act.
1-53           SECTION 6.  This Act takes effect September 1, 2001.
1-54                                  * * * * *