Texas Adopts Technical Regulatory Amendments
Effective June 30, 2016, the Texas Legislature has adopted several technical amendments to various provisions relating to Mortgage Bankers, Residential Mortgage Loan Servicers and Residential Mortgage Loan Originators in order to provide clarification and to improve grammar and readability.
Duties and Responsibilities of Mortgage Bankers and RMLOs and Mortgage Loan Companies
7 TAC § 81 governs the licensing, registration and conduct of resident mortgage loan originators and mortgage bankers. Section 81.2, which outlines the definitions of terms used for this section, has been revised to reflect terms in an alphabetical order and to include new terms creating uniformity with Chapters 79 and 80.
Additionally, the Chapter 81 Duties and Responsibilities section has been amended to include clarifying language to 7 TAC § 81.204, concerning books and records, and to 7 TAC § 81.205, the mortgage call reports section, to emphasize “that the term ‘administrative action’ includes the assessment of an administrative penalty.”
7 TAC § 80 governs the licensing, registration and conduct of Mortgage Companies, Financial Services Companies, Credit Union Subsidiary Organizations, Auxiliary Mortgage Loan Activity Companies, and Independent Contractor Loan Processors and Underwriters. Section 80.2, which outlines the definitions of terms used for this section, has been revised to reflect terms in an alphabetical order and to include new terms creating uniformity with Chapters 79 and 81.
Disclosure Requirements for Residential Mortgage Loan Servicers
7 TAC § 79.1 outlines the definitions for terms as used in Chapter 79 and has been amended to reorganize the definitions alphabetically and to now include a definition of the “Act” as the “Residential Mortgage Loan Servicer Registration Act.”
Section 19.2 regarding disclosure requirements is amended to clarify “that the required disclosure is only necessary for the servicing of residential mortgage loans on real estate located in Texas. It further requires the posting of the disclosure on the registrant’s website.” The disclosure language appears as follows:
Complaints regarding the servicing of your mortgage should be sent to the .
- Department of Savings and Mortgage Lending
- 2601 North Lamar
- Suite 201
- Austin, Tx
- 78705
- (Toll-Free) 877-276-5550
- smlinfo@sml.texas.gov
A complaint form and instructions may be downloaded and printed from the Department’s website located at www.sml.texas.gov or obtained from the department upon request by mail at the address above, by telephone at its toll-free consumer hotline or by email, listed above.
Interpretations and Advisory Letters
7 TAC § 1.201 defines terms as used relating to Official Interpretations and Advisory Letters. The definition of “official interpretation” has been revised and a definition for “advisory letter” has been added. “Official interpretation” is now defined as: “A letter issued by the commissioner and approved by the Finance Commission of Texas under Texas Finance Code, §14.108 interpreting a provision of Texas Finance Code, Title 4, Subtitle A or B in light of relevant facts provided by a requestor.” “Advisory letter” is defined as: “A letter by the commissioner or an OCCC employee providing an informal advisory response to a question concerning a provision of law. The term does not include:
- An official interpretation
- An advisory bulletin addressed to a body of stakeholders
- Instructions for submitting required information to the OCCC (e.g., annual report instructions)
- A report or study provided to the Texas Legislature or the Finance Commission of Texas
- A letter sent in connection with an examination, investigation, license or registration application, complaint, or enforcement action.
Margaret Wright, JD, is regulatory compliance director with CLA. She is a graduate of Stonehill College and earned her juris doctor at Suffolk University Law School. She is admitted to the Massachusetts Bar.
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