FINANCE CODE
CHAPTER 157. REGISTRATION OF MORTGAGE BANKERS
§ 157.001. SHORT TITLE.
Text of section effective January 1, 2004
This chapter may be cited as the Mortgage Banker Registration
Act.
Added by Acts 2003, 78th Leg., ch. 1301, § 1, eff. Jan. 1, 2004.
§ 157.002. DEFINITIONS.
Text of section effective January 1, 2004
In this chapter:
(1) "Commissioner" means the savings and loan
commissioner.
(2) "Mortgage banker" means a person who:
(A) accepts an application for a mortgage loan or
makes a mortgage loan; and
(B) is an approved or authorized:
(i) mortgagee with direct endorsement
underwriting authority granted by the United States Department of
Housing and Urban Development;
(ii) seller or servicer of the Federal
National Mortgage Association or the Federal Home Loan Mortgage
Corporation; or
(iii) issuer for the Government National
Mortgage Association.
(3) "Mortgage loan" means a debt secured by a first
lien on residential real property designed principally for
occupancy by one to four families that is created by a deed of
trust, security deed, or other security instrument.
Added by Acts 2003, 78th Leg., ch. 1301, § 1, eff. Jan. 1, 2004.
§ 157.003. REGISTRATION REQUIRED.
Text of section effective January 1, 2004
(a) A person must register under this chapter before the
person may conduct the business of a mortgage banker in this state,
unless the person is exempt under this section or Section 157. 004.
(b) To register under this chapter, a mortgage banker shall
file with the commissioner a statement that contains:
(1) the name and address of the mortgage banker;
(2) the name, address, and telephone number of the
representative of the mortgage banker to be contacted regarding a
written complaint; and
(3) a list of the locations in this state at which the
person conducts the business of a mortgage banker.
(c) An employee of a mortgage banker is not required to
register under this chapter.
(d) The commissioner may not require a mortgage banker to
provide information other than information contained in the
registration statement.
(e) The registration of a mortgage banker is valid until
withdrawn or revoked. Periodic renewal of the registration is not
required.
Added by Acts 2003, 78th Leg., ch. 1301, § 1, eff. Jan. 1, 2004.
§ 157.004. EXEMPTIONS.
Text of section effective January 1, 2004
This chapter does not apply to:
(1) a federally insured bank, savings bank, savings
and loan association, Farm Credit System Institution, or credit
union;
(2) an affiliate or subsidiary of a federally insured
bank, savings bank, savings and loan association, Farm Credit
System Institution, or credit union;
(3) a person licensed as a mortgage broker under
Chapter 156; or
(4) an authorized lender licensed under Chapter 342
if:
(A) the authorized lender includes with an
application for a mortgage loan a notice that is substantially
similar to the notice required by Section 157.007 and provides the
method of submitting complaints to the consumer credit
commissioner;
(B) the authorized lender uses the forms adopted
by the Finance Commission of Texas under Section 157.011(b); and
(C) the Finance Commission of Texas determines by
rule that the consumer credit commissioner may suspend or revoke a
license issued under Chapter 342 if the authorized lender engages
in unlawful or unfair practices while making a mortgage loan.
Added by Acts 2003, 78th Leg., ch. 1301, § 1, eff. Jan. 1, 2004.
§ 157.005. UPDATE OF REGISTRATION STATEMENT.
Text of section effective January 1, 2004
A mortgage banker shall update information contained in the
registration statement not later than the 30th day after the date
the information changes.
Added by Acts 2003, 78th Leg., ch. 1301, § 1, eff. Jan. 1, 2004.
§ 157.006. REGISTRATION AND ADMINISTRATION FEE.
Text of section effective January 1, 2004
The commissioner may charge a mortgage banker a reasonable
fee to cover the costs of filing the registration statement and
administering this chapter. The fee may not exceed $500 a year.
Added by Acts 2003, 78th Leg., ch. 1301, § 1, eff. Jan. 1, 2004.
§ 157.007. DISCLOSURE STATEMENT.
Text of section effective January 1, 2004
A mortgage banker shall include the following notice to a
mortgage loan applicant with an application for a mortgage loan:
"COMPLAINTS REGARDING MORTGAGE BANKERS SHOULD BE SENT TO THE
SAVINGS AND LOAN DEPARTMENT, ______________________________
(street address of the Savings and Loan Department). A TOLL-FREE
CONSUMER HOTLINE IS AVAILABLE AT _______________ (telephone number
of the Savings and Loan Department's toll-free consumer hotline)."
Added by Acts 2003, 78th Leg., ch. 1301, § 1, eff. Jan. 1, 2004.
§ 157.008. COMPLAINTS.
Text of section effective January 1, 2004
(a) If the Savings and Loan Department receives a signed
written complaint from a person concerning a mortgage banker, the
commissioner shall notify the representative designated by the
mortgage banker under Section 157.003(b) in writing of the
complaint and provide a copy of the complaint to the
representative.
(b) The commissioner may request documentary and other
evidence considered by the commissioner as necessary to effectively
evaluate the complaint, including correspondence, loan documents,
and disclosures. A mortgage banker shall promptly provide any
evidence requested by the commissioner.
(c) The commissioner may require the mortgage banker to
resolve the complaint or to provide the commissioner with a
response to the complaint. The commissioner may direct the
mortgage banker in writing to take specific action to resolve the
complaint.
Added by Acts 2003, 78th Leg., ch. 1301, § 1, eff. Jan. 1, 2004.
§ 157.009. TERMINATION OF REGISTRATION.
Text of section effective January 1, 2004
(a) A mortgage banker may withdraw the mortgage banker's
registration at any time.
(b) The commissioner may revoke the registration of a
mortgage banker if the mortgage banker fails to pay the
registration and administration fee and fails to cure the default
before the 30th day after the date the mortgage banker receives
notice of the default from the commissioner.
(c) The commissioner may revoke the registration of a
mortgage banker if the mortgage banker fails or refuses to comply
with the commissioner's written request for a response to a
complaint.
(d) The commissioner may revoke the registration of a
mortgage banker after considering a complaint filed under this
chapter if the commissioner concludes that the mortgage banker has
engaged in an intentional course of conduct to violate federal or
state law or has engaged in an intentional course of conduct that
constitutes improper, fraudulent, or dishonest dealings. The
commissioner shall recite the basis of the decision in an order
revoking the registration.
(e) If the commissioner proposes to revoke a registration
under Subsection (c) or (d), the mortgage banker is entitled to a
hearing before the commissioner or a hearings officer, who shall
propose a decision to the commissioner. The commissioner or
hearings officer shall prescribe the time and place of the hearing.
The hearing is governed by Chapter 2001, Government Code.
(f) A mortgage banker aggrieved by a ruling, order, or
decision of the commissioner is entitled to appeal to a district
court in the county in which the hearing was held. An appeal under
this subsection is governed by Chapter 2001, Government Code.
Added by Acts 2003, 78th Leg., ch. 1301, § 1, eff. Jan. 1, 2004.
§ 157.010. REREGISTRATION.
Text of section effective January 1, 2004
(a) A mortgage banker whose registration is revoked by the
commissioner may register again only after receiving the
authorization of the commissioner. The commissioner shall
authorize the registration if the commissioner concludes that the
mortgage banker will comply with state and federal law and will not
engage in improper, fraudulent, or dishonest dealings.
(b) A mortgage banker who seeks registration under this
section may request and is entitled to a hearing before the
commissioner or a hearings officer, who shall propose a decision to
the commissioner. The hearing is governed by Chapter 2001,
Government Code.
(c) If the commissioner denies authorization for the
registration of a mortgage banker under this section, the
commissioner shall recite the basis of the decision in an order
denying the authorization.
(d) If the commissioner denies authorization for the
registration of a mortgage banker under this section, the mortgage
banker is entitled to appeal to a district court in Travis County.
An appeal brought under this subsection is governed by Chapter
2001, Government Code.
Added by Acts 2003, 78th Leg., ch. 1301, § 1, eff. Jan. 1, 2004.
§ 157.011. RULEMAKING AUTHORITY.
Text of section effective January 1, 2004
(a) The Finance Commission of Texas may adopt rules
necessary to implement or fulfill the purpose of this chapter.
(b) The Finance Commission of Texas may by rule adopt
standard forms for, and require the use of the forms by, a mortgage
banker who represents that an applicant for a loan is preapproved or
has prequalified for the loan.
Added by Acts 2003, 78th Leg., ch. 1301, § 1, eff. Jan. 1, 2004.
