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AN ACT
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relating to the regulatory authority of the savings and mortgage |
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lending commissioner; authorizing fees. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 92.554(a), Finance Code, is amended to |
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read as follows: |
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(a) On receipt of an application, the commissioner shall |
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submit to the Texas Register for publication in the next issue after |
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the date the application is received or publish in a newspaper of |
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general circulation that is printed in English in the county in |
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which the savings bank is to have the savings bank's principal |
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office: |
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(1) notice of the application; |
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(2) the date the application was filed; and |
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(3) the identity of each party to the application. |
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SECTION 2. Subchapter B, Chapter 96, Finance Code, is |
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amended by adding Section 96.0551 to read as follows: |
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Sec. 96.0551. REGULATION AND EXAMINATION OF CERTAIN RELATED |
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ENTITIES. (a) In this section, "state savings bank" has the |
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meaning assigned by Section 31.002. |
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(b) The commissioner may regulate and examine, to the same |
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extent as if the services or activities were performed by a state |
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savings bank on its own premises: |
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(1) the activities of a state savings bank affiliate; |
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and |
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(2) the services or activities of a third-party |
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service provider that a state savings bank or state savings bank |
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affiliate has contracted for or otherwise arranged to be performed |
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on behalf of the state savings bank or state savings bank affiliate. |
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(c) The commissioner may collect a fee from an examined |
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third-party service provider or affiliate in connection with each |
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examination to cover the cost of the examination or may collect that |
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fee from the state savings banks that use the examined third-party |
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service provider. |
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(d) For purposes of this section, a third-party service |
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provider or state savings bank affiliate does not include a company |
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or firm in which ownership or membership is limited to individuals |
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and conditioned by law on the existence and maintenance of |
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professional licensing. |
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(e) To promote regulatory efficiency, if, in the preceding |
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24 months, a third-party service provider or affiliate has been |
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examined by a federal or state financial services regulatory agency |
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or by a member agency of the Federal Financial Institutions |
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Examination Council, or its successor agency, the commissioner may |
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accept the results of that examination instead of conducting the |
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commissioner's own examination of the third-party service provider |
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or affiliate. Nothing in this subsection shall be construed as |
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limiting or restricting the commissioner from participating in an |
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examination of a third-party service provider or affiliate |
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conducted by a federal or state financial services regulatory |
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agency or by a member agency of the Federal Financial Institutions |
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Examination Council, or its successor agency. |
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(f) A third-party service provider that refuses to submit to |
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examination or to pay an assessed fee for examination under this |
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section is subject to an enforcement action under Chapter 96. With |
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respect to a third-party service provider's refusal to submit to |
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examination, the commissioner may notify all state savings banks of |
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the refusal and warn that continued use of the third-party service |
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provider may constitute an unsafe and unsound banking practice. |
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SECTION 3. Section 97.006, Finance Code, is amended by |
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adding Subsections (f), (g), and (h) to read as follows: |
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(f) The commissioner may: |
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(1) examine a holding company that controls a state |
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savings bank to the same extent as if the holding company were a |
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state savings bank; and |
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(2) bring an enforcement action under Chapter 96 |
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against a holding company described by Subdivision (1) or other |
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person that violates or participates in a violation of this |
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subtitle, an agreement filed with the commissioner under this |
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chapter, or a rule adopted by the finance commission or order issued |
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by the commissioner under this subtitle, as if the holding company |
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were a state savings bank. |
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(g) The grounds, procedures, and effects of an enforcement |
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action brought under Subsection (f) apply to a holding company, an |
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officer, director, or employee of a holding company, or a |
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controlling shareholder or other person participating in the |
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affairs of a holding company in the same manner as the grounds, |
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procedures, and effects apply to a state savings bank, an officer, |
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director, or employee of a state savings bank, or a controlling |
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shareholder or other person participating in the affairs of a state |
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savings bank. |
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(h) A state savings bank that is controlled by a holding |
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company that is not a Texas holding company shall be subject to all |
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laws of this state that are applicable to state savings banks that |
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are controlled by Texas holding companies. |
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SECTION 4. Section 156.2041(a), Finance Code, is amended to |
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read as follows: |
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(a) To be issued a mortgage company license, an applicant |
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must: |
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(1) submit a completed application together with the |
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payment of applicable fees through the Nationwide Mortgage |
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Licensing System and Registry; |
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(2) designate control persons for the mortgage company |
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through the Nationwide Mortgage Licensing System and Registry; |
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(3) designate an individual licensed as a residential |
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mortgage loan originator under Chapter 157 as the company's |
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qualifying individual; |
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(4) submit a completed branch application through the |
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Nationwide Mortgage Licensing System and Registry for each branch |
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office that engages in residential mortgage loan activity on |
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residential real estate located in this state; |
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(5) not be in violation of this chapter, a rule adopted |
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under this chapter, or any order previously issued by the |
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commissioner to the applicant; |
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(6) have the company name or assumed name properly |
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filed with either the secretary of state or with the appropriate |
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county clerk's office; and |
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(7) [maintain a physical office in this state; and |
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[(8)] provide financial statements and any other |
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information required by the commissioner. |
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SECTION 5. Section 156.2042(a), Finance Code, is amended to |
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read as follows: |
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(a) To be issued a credit union subsidiary organization |
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license, an applicant must: |
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(1) submit a completed application together with the |
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payment of applicable fees through the Nationwide Mortgage |
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Licensing System and Registry; |
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(2) designate control persons for the organization |
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through the Nationwide Mortgage Licensing System and Registry; |
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(3) designate an individual licensed as a residential |
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mortgage loan originator under Chapter 157 as the company's |
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qualifying individual; |
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(4) submit a completed branch application through the |
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Nationwide Mortgage Licensing System and Registry for each branch |
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office that engages in residential mortgage loan activity on |
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residential real estate located in this state; and |
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(5) not be in violation of this chapter, a rule adopted |
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under this chapter, or any order previously issued by the |
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commissioner to the applicant[; and |
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[(6) maintain a physical office in this state]. |
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SECTION 6. Section 156.501(c), Finance Code, is amended to |
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read as follows: |
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(c) Amounts in the recovery fund may be invested and |
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reinvested in accordance with Chapter 2256, Government Code, and |
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under the prudent person standard described by Section 11b, Article |
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VII, Texas Constitution [in the same manner as funds of the |
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Employees Retirement System of Texas], and the interest from these |
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investments shall be deposited to the credit of the fund. An |
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investment may not be made under this subsection if the investment |
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will impair the necessary liquidity required to satisfy judgment |
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payments awarded under this subchapter. |
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SECTION 7. The following provisions of the Finance Code are |
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repealed: |
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(1) Sections 156.212(a) and (a-1); |
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(2) Sections 156.501(d) and (f); and |
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(3) Section 156.502(b). |
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SECTION 8. Section 92.554(a), Finance Code, as amended by |
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this Act, applies only to an application filed on or after the |
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effective date of this Act. An application filed before the |
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effective date of this Act is governed by the law in effect on the |
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date the application was filed, and the former law is continued in |
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effect for that purpose. |
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SECTION 9. Section 156.501(c), Finance Code, as amended by |
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this Act, applies only to an investment made on or after the |
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effective date of this Act. An investment made before the effective |
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date of this Act is governed by the law in effect on the date the |
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investment was made, and the former law is continued in effect for |
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that purpose. |
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SECTION 10. This Act takes effect September 1, 2021. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 1900 passed the Senate on |
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April 19, 2021, by the following vote: Yeas 31, Nays 0; and that |
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the Senate concurred in House amendment on May 27, 2021, by the |
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following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 1900 passed the House, with |
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amendment, on May 18, 2021, by the following vote: Yeas 114, |
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Nays 23, two present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |