LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 2, 2001
TO: Honorable David Sibley, Chair, Senate Committee on
Business & Commerce
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1493 by Wise (Relating to the regulation of mortgage
brokers.), As Engrossed
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1493, As Engrossed: positive impact of $0 through the biennium *
* ending August 31, 2003. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $0 *
* 2003 0 *
* 2004 0 *
* 2005 0 *
* 2006 0 *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Probable Revenue Gain/(Loss) *
* Year General Revenue Fund from General Revenue Fund *
* 0001 0001 *
* 2002 $(76,000) $76,000 *
* 2003 (76,000) 76,000 *
* 2004 (76,000) 76,000 *
* 2005 (76,000) 76,000 *
* 2006 (76,000) 76,000 *
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Fiscal Analysis
The bill amends the Finance Code to require the Finance Commission (FC)
to adopt standard forms for use by mortgage brokers and loan officers in
representing that an applicant for a mortgage loan is preapproved or has
prequalified for the loan. The provisions of the bill also require the
Savings and Loan Department (S&LD) Commissioner to obtain an FBI criminal
history record on each license applicant and an annual report from each
licensed mortgage broker including loan origination and other information
specified by the Commissioner on a prescribed form.
The effective date of the bill is September 1, 2001.
Methodology
Based on information from the Department of Public Safety (DPS), in order
for the FBI to perform a finger print criminal history check on an
applicant ($24 each), the FBI requires that a DPS finger print criminal
check also be performed ($15 each). The S&LD currently obtains a DPS
criminal check on the name of each applicant for a $1 fee. Thus, the
additional cost will be $38 ($24 plus $15 minus $1) for each applicant
for a license or renewal. The S&LD estimates it will continue to receive
2,000 license applications each year.
It is assumed that the S&LD would charge each applicant the cost to
obtain the criminal history check to cover the cost of implementing the
bill.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 450 Texas Savings and Loan Department
LBB Staff: JK, JO, RT, DE