TO: | Honorable Burt R. Solomons, Chair, House Committee on Financial Institutions |
FROM: | John Keel, Director, Legislative Budget Board |
IN RE: | HB2673 by Flynn (relating to the registration of mortgage bankers. ), Committee Report 1st House, Substituted |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2004 | $0 |
2005 | $0 |
2006 | $0 |
2007 | $0 |
2008 | $0 |
Fiscal Year | Probable Revenue Gain/(Loss) fromGENERAL REVENUE FUND 1 |
Probable Savings/(Cost) fromGENERAL REVENUE FUND 1 |
Change in Number of State Employees from FY 2003 |
---|---|---|---|
2004 | $278,647 | ($278,647) | 3.8 |
2005 | $347,197 | ($347,197) | 4.8 |
2006 | $347,197 | ($347,197) | 4.8 |
2007 | $347,197 | ($347,197) | 4.8 |
2008 | $347,197 | ($347,197) | 4.8 |
The bill would require the Savings and Loan Department to register between 3,000 and 4,000 mortgage banking companies, with an exclusion of licensed second lien mortgage lenders from registration. While the agency would not be required to to license, inspect, or conduct background checks on the estimated 10,000 to 15,000 loan originators working for these companies, it would be required to investigate complaints against them and would be given broader ability to revoke registrations than it currently has with mortgage brokers. The bill would also require a mortgage banker to provide notice to each mortgage applicant that complaints may be sent to the agency and prescribes the agency’s responsibility for investigating complaints and enforcing applicable state and federal mortgage statutes.
The bill would take effect September 1, 2003.
The agency would require 1 Administrative Technician I FTE ($29,474 total annual salary and benefits) each year and 0.25 Admininstrative Technician II FTE ($8,470 total annual salary and benefits) each year to process mortgage banker registrations.
The agency would require 0.75 Administrative Technician II FTEs ($25,412 total annual salary and benefits) each year, 0.75 Attorney III FTE ($52,990 total annual salary and benefits) each year, 1 Investigator IV FTE ($51,384 total annual salary and benefits) each year, and 1 Investigator VI FTE ($57,807 total annual salary and benefits) starting in fiscal year 2005 to investigate complaints, participate in enforcement hearings, and help process mortgage banker registrations.
The agency would require $23,580 each year to pay for an administrative law judge for 262 hours of hearings (230 hours for cases related to revocations from complaints and 32 hours for cases related to revocations from late or non-payment of fees).
The agency would need to find another location for the FTEs, as the Finance Commission Building is fully occupied. This would require $15,000 in fiscal year 2004 for a local area network in the new location.
For investigator travel and training, rent, equipment, and other operating expenses, the agency would require $72,337 in fiscal year 2004 and $98,080 each year thereafter.
Source Agencies: | 450 Savings and Loan Department, 466 Office of Consumer Credit Commissioner
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LBB Staff: | JK, JRO, RT, RB
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