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78R7010 CLG-D
By: West S.B. No. 1001
A BILL TO BE ENTITLED
AN ACT
relating to information required to be filed by mortgage lenders.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle B, Title 4, Finance Code, is amended by
adding Chapter 350 to read as follows:
CHAPTER 350. FILING OF MORTGAGE LOAN INFORMATION
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 350.001. PURPOSE. The purpose of this chapter is to
require on a one-time basis that mortgage lenders in this state,
immediately after the effective date of this chapter, file mortgage
lending rates and supporting data, including current rates and
estimated rates to be charged in the six-month period following the
effective date of this chapter, and other information relating to
mortgage lending practices with the finance commission for the
purpose of the study required to be conducted under Chapter 1235,
Acts of the 77th Legislature, Regular Session, 2001.
[Sections 350.002-350.100 reserved for expansion]
SUBCHAPTER B. FILING OF LENDING RATES AND OTHER INFORMATION
Sec. 350.101. RATE AND OTHER LENDING INFORMATION. (a)
Mortgage lenders must file lending rates and supporting information
and any other information regarding mortgage loans with the finance
commission in accordance with the requirements determined by the
finance commission under this chapter and Chapter 1235, Acts of the
77th Legislature, Regular Session, 2001.
(b) Filings made by each mortgage lender must be sufficient
to respond to the finance commission's request for information
under this chapter and Chapter 1235, Acts of the 77th Legislature,
Regular Session, 2001, and must provide both current mortgage
lending rates and estimated mortgage lending rates for the periods
prescribed by the finance commission.
(c) As determined by the finance commission under
Subsection (d), the mortgage lender shall file:
(1) all mortgage lending rates and all applicable
rating manuals;
(2) information on the guidelines and formulas used by
the lender to underwrite prospective borrowers' loans and any other
information relating to the underwriting of mortgage loans as
required by the finance commission;
(3) information on the mortgage lender's profits;
(4) information on the automated measures or models
used to underwrite loans; and
(5) any other information about mortgage loans
required by the finance commission for purposes of the study
described by Section 350.001.
(d) The finance commission shall determine:
(1) the type of information to be included in the
filing;
(2) the format in which the information is to be
submitted; and
(3) the date on which the filing is due.
Sec. 350.102. ADDITIONAL INFORMATION. After the initial
submission of information under Section 350.101, the finance
commission may require a mortgage lender to provide additional,
reasonable information for purposes of the clarification or
completeness of the initial submission.
Sec. 350.103. USE OF FILED RATE AND OTHER INFORMATION.
Information filed by a mortgage lender with the finance commission
under this chapter that is confidential under a law that applied to
the lender before the effective date of this chapter remains
confidential and is not subject to disclosure under Chapter 552,
Government Code, except that the information may be disclosed as
provided by Section 552.008, Government Code, relating to
information for legislative purposes. Information disclosed under
Section 552.008, Government Code, shall be provided in a commonly
used electronic format, including in spreadsheet or
comma-delimited format, if so requested. The information may not
be released to the public except in summary form in the reports
required under Section 350.104 and Chapter 1235, Acts of the 77th
Legislature, Regular Session, 2001.
Sec. 350.104. REPORT. (a) After conducting the study
described by Section 350.001, the finance commission shall submit a
report to the governor, the lieutenant governor, the speaker of the
house of representatives, and the members of the legislature.
(b) The report required under this section shall provide a
summary review of the mortgage lending rates currently charged by
mortgage lenders and estimated to be charged over the six-month
period following the effective date of this chapter, presented in a
manner that protects the identity of individual mortgage applicants
and prospective borrowers:
(1) to inform the legislature as to whether the rates
are just, adequate, and reasonable and not excessive or unfairly
discriminatory; and
(2) to assist the legislature in the determination of
the most effective and efficient regulatory system for mortgage
lending practices in this state.
Sec. 350.105. NOTIFICATION; NONCOMPLIANCE. The finance
commission shall notify the governor, the lieutenant governor, the
speaker of the house of representatives, and the members of the
legislature of the names of the mortgage lenders whom the finance
commission requested to submit information under this chapter and
Chapter 1235, Acts of the 77th Legislature, Regular Session, 2001,
and the names of the mortgage lenders who did not respond wholly or
partly to the finance commission's request. This notification
shall be made by separate letter on the fourth day following the
date on which the finance commission determines the filing is due
under Section 350.101(d).
[Sections 350.106-350.200 reserved for expansion]
SUBCHAPTER C. MISCELLANEOUS PROVISIONS
Sec. 350.201. EXPIRATION. This chapter expires January 1,
2005.
SECTION 2. Section 27, Chapter 1235, Acts of the 77th
Legislature, Regular Session, 2001, is amended to read as follows:
Sec. 27. The Finance Commission of Texas and the consumer
credit commissioner shall conduct a study of mortgage lending
practices with emphasis on identifying possible predatory and
discriminatory lending patterns or practices. In conducting the
study, the agencies shall collect data from entities making
mortgage loans about mortgage loans using the data formats of the
Home Mortgage Disclosure Act of 1975 (12 U.S.C. Section 2801 et
seq.) and other data fields necessary to identify possible
predatory practices. In conducting the study, the agencies shall
also study and consider parameters that could be used to
consistently classify credit risk among mortgage loans for the
purpose of assessing possible predatory or discriminatory lending
practices. The agencies shall prepare a report detailing the
findings and recommendations resulting from the study and deliver
the report to the lieutenant governor, the speaker of the house of
representatives, and legislative committees dealing with lending
entities before December 1, 2004 [2002].
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2003.