TO: | Honorable Burt R. Solomons, Chair, House Committee on Financial Institutions |
FROM: | John Keel, Director, Legislative Budget Board |
IN RE: | SB1667 by Averitt (relating to obtaining criminal history record information on an applicant for or holder of a mortgage broker or loan officer license. ), Committee Report 2nd 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 |
---|---|---|
2004 | $397,800 | ($397,800) |
2005 | $397,800 | ($397,800) |
2006 | $397,800 | ($397,800) |
2007 | $397,800 | ($397,800) |
2008 | $397,800 | ($397,800) |
The bill would amend the Mortgage Broker License Act (MBLAct) by requiring applicants for a new license to submit fingerprints and authorizing the Savings and Loan Commissioner to obtain criminal history record information on the applicant from the Federal Bureau of Investigation (FBI) and the Department of Public Safety. The amendment conforms the statute to strict FBI requirements for the release of criminal record information. The bill does not require fingerprint checks for renewal of a license.
The bill would take effect September 1, 2003.
The Savings and Loan Department currently has over 19,000 licenses issued to individual mortgage brokers and loan officers under the MBLAct and has consistently received an average of over 850 new license applications each month for the last twelve months. The bill would require the Department to obtain a DPS and an FBI fingerprint criminal history check to protect consumers and reduce mortgage fraud by keeping individuals with criminal backgrounds from entering the mortgage broker industry. Based on information from the DPS, in order for the FBI to perform a fingerprint criminal history check on an applicant ($24 each), the FBI requires that a DPS fingerprint check be performed ($15 each). The Department estimates 10,200 new background checks at $39 each per year.
Source Agencies: | 450 Savings and Loan Department, 451 Department of Banking
|
LBB Staff: | JK, RB, JRO, RT
|