The bill would expand the authority of the Department of Savings and Mortgage Lending (DSML) to allow it to regulate, examine, and collect examination fees from state savings bank affiliates and certain contracted third-party service providers. The bill would allow DSML to examine holding companies that control a state savings bank and to take enforcement action against these holding companies.
The bill would remove the licensure requirement for certain applicants to maintain a physical business location in Texas, allow the DSML Commissioner to post certain notices in general circulation newspapers, and limit the usage of the recovery fund.
DSML is a self-directed, semi-independent state entity and does not receive appropriated funds. The agency is responsible for funding all direct and indirect operational costs and sets the amount of fees, penalties, charges, and revenues required to cover these costs. The agency indicates that any costs incurred in performing examinations would be recovered through the fees authorized within the bill. It is assumed that any additional costs associated with the bill's provisions could be absorbed using existing resources.
No significant fiscal implication to units of local government is anticipated.