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A BILL TO BE ENTITLED
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AN ACT
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relating to imposing an additional duty on mortgage brokers with |
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respect to mortgage applicants. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 156, Finance Code, is |
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amended by adding Section 156.216 to read as follows: |
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Sec. 156.216. MORTGAGE BROKER FIDUCIARY DUTY. (a) A |
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mortgage broker owes a fiduciary duty to a mortgage applicant in the |
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origination of a mortgage loan. |
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(b) The finance commission shall adopt rules to implement |
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Subsection (a). In adopting rules under this subsection, the |
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commission shall require that a mortgage broker: |
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(1) make reasonable efforts to secure a loan that is |
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suitable to the mortgage applicant considering the mortgage |
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applicant's circumstances, including the loan options, rates, |
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charges, and repayment terms for which the applicant qualifies; and |
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(2) be knowledgeable about and offer the mortgage |
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applicant the most favorable terms available to a person having the |
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applicant's qualifications known to the mortgage broker. |
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(c) The duties of a mortgage broker, as prescribed by this |
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section and rules adopted under this section, may not be waived or |
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disclaimed unless otherwise provided by law. |
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SECTION 2. Not later than December 1, 2009, the Finance |
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Commission of Texas shall adopt the rules required by Section |
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156.216, Finance Code, as added by this Act. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |