reglab/statecodes huggingface dataset:
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 158 - Residential Mortgage Loan Servicers › Subchapter B. Registration of Residential Mortgage Loan Servicers › Section 158.051. Registration Required

Sec. 158.051.  REGISTRATION REQUIRED.  A person may not act as a residential mortgage loan servicer, directly or indirectly, for a residential mortgage loan secured by a lien on residential real estate in this state unless the person is registered under this chapter or is exempt under Section 158.052.
Added by Acts 2011, 82nd Leg., R.S., Ch. 588 (S.B. 17), Sec. 1, eff. September 1, 2011.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 158 - Residential Mortgage Loan Servicers › Subchapter B. Registration of Residential Mortgage Loan Servicers › Section 158.052. Exemptions; Applicability

Sec. 158.052.  EXEMPTIONS; APPLICABILITY.  (a)  This chapter does not require registration by:
(1)  a federal or state depository institution, or a subsidiary or affiliate of a federal or state depository institution;
(2)  a person registered under Chapter 157;
(3)  a person licensed under Chapter 342 or regulated under Chapter 343, if the person does not act as a residential mortgage loan servicer servicing first-lien secured loans; or
(4)  a person making a residential mortgage loan with the person's own funds, or to secure all or a portion of the purchase price of real property sold by that person.
(b)  This chapter applies only to a residential mortgage loan servicer that services at least one residential mortgage loan.
(c)  Nothing in this chapter permits a person who is not otherwise exempt from this chapter to act as a residential mortgage loan originator, as defined by Section 180.002, without obtaining a license under the applicable provisions of law.
Added by Acts 2011, 82nd Leg., R.S., Ch. 588 (S.B. 17), Sec. 1, eff. September 1, 2011.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 158 - Residential Mortgage Loan Servicers › Subchapter B. Registration of Residential Mortgage Loan Servicers › Section 158.053. Application for Registration; Fee

Sec. 158.053.  APPLICATION FOR REGISTRATION; FEE.  (a)  To register under this chapter, a residential mortgage loan servicer shall file with the commissioner an application for registration that must:
(1)  be in writing;
(2)  be under oath;
(3)  be in the form prescribed by the commissioner; and
(4)  contain:
(A)  the name and the address of the principal place of business of the applicant; and
(B)  the name, title, and address of the person authorized by the applicant to respond to complaints.
(b)  At the time of making application, the applicant shall pay to the commissioner a registration fee in an amount not to exceed $500 as determined by the finance commission.
(c)  An applicant is not required to pay a registration fee under Subsection (b) if the applicant:
(1)  collects delinquent consumer debts owed on residential mortgage loans;
(2)  does not own the residential mortgage loans for which the applicant acts as a residential mortgage loan servicer; and
(3)  is a third-party debt collector that has filed a bond in compliance with Chapter 392.
Added by Acts 2011, 82nd Leg., R.S., Ch. 588 (S.B. 17), Sec. 1, eff. September 1, 2011.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 158 - Residential Mortgage Loan Servicers › Subchapter B. Registration of Residential Mortgage Loan Servicers › Section 158.054. Update of Registration

Sec. 158.054.  UPDATE OF REGISTRATION.  A registrant shall notify the commissioner of a change in any of the information provided in the registration application not later than the 30th day after the date the information changes.
Added by Acts 2011, 82nd Leg., R.S., Ch. 588 (S.B. 17), Sec. 1, eff. September 1, 2011.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 158 - Residential Mortgage Loan Servicers › Subchapter B. Registration of Residential Mortgage Loan Servicers › Section 158.055. Bond

Sec. 158.055.  BOND.  (a)  Before approval of the registration, an applicant for registration under this chapter shall file with the commissioner, and shall keep in force while the registration remains in effect, a surety bond meeting the requirements of this section or, if a surety bond is not available to the applicant from a surety company authorized to do business in this state, other collateral of like kind as determined by the commissioner.
(b)  The bond must be:
(1)  in an amount not to exceed $200,000, except as provided by Subsection (c); and
(2)  payable to the commissioner.
(c)  This subsection applies only to an applicant who services only residential mortgage loans secured by unimproved residential real estate or services only residential mortgage loans secured by foreclosed property with a dwelling, or both.  If sales of the property described by this subsection do not exceed $1 million annually, the bond for an applicant described by this section must be in an amount not to exceed $25,000.
(d)  If a registrant fails to comply with a final order of the commissioner, the commissioner may make a claim on the bond to recover and pay a consumer the amount to which the consumer was entitled under the commissioner's order.
(e)  When an action is commenced on a registrant's bond, the commissioner may require the filing of a new acceptable bond.  Immediately on recovery on any action on the bond, the registrant shall file a new bond.
(f)  The bond procedures established by this section are created to specifically exclude the participation of registrants in the recovery fund established under Chapter 156.
(g)  The finance commission may adopt rules establishing the terms and conditions of the surety bond and the qualifications of the surety.
(h)  A registrant is not required to file a bond under this chapter if the registrant:
(1)  collects delinquent consumer debts owed on residential mortgage loans;
(2)  does not own the residential mortgage loans for which the registrant acts as a residential mortgage loan servicer; and
(3)  is a third-party debt collector that has filed a bond in compliance with Chapter 392.
Added by Acts 2011, 82nd Leg., R.S., Ch. 588 (S.B. 17), Sec. 1, eff. September 1, 2011.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 158 - Residential Mortgage Loan Servicers › Subchapter B. Registration of Residential Mortgage Loan Servicers › Section 158.056. Approval of Registration

Sec. 158.056.  APPROVAL OF REGISTRATION.  The commissioner shall approve an application for registration under this chapter on the applicant's payment of the required fees and the commissioner's approval of the surety bond.
Added by Acts 2011, 82nd Leg., R.S., Ch. 588 (S.B. 17), Sec. 1, eff. September 1, 2011.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 158 - Residential Mortgage Loan Servicers › Subchapter B. Registration of Residential Mortgage Loan Servicers › Section 158.057. Notice of Change of Registrant's Condition

Sec. 158.057.  NOTICE OF CHANGE OF REGISTRANT'S CONDITION.  (a)  A registrant shall notify the commissioner in writing not later than the 10th day after:
(1)  the filing for bankruptcy or reorganization of the registrant;
(2)  the filing of a criminal indictment related in any manner to the registrant's activities; or
(3)  the receipt of notification of the issuance of a final order to cease and desist, a final order of the suspension or revocation of a license or registration, or another final formal or informal regulatory action taken against the registrant in this or another state.
(b)  The notification required by Subsection (a)(3) must include the reasons for a final regulatory action described by that subdivision.
Added by Acts 2011, 82nd Leg., R.S., Ch. 588 (S.B. 17), Sec. 1, eff. September 1, 2011.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 158 - Residential Mortgage Loan Servicers › Subchapter B. Registration of Residential Mortgage Loan Servicers › Section 158.058. Renewal of Registration

Sec. 158.058.  RENEWAL OF REGISTRATION.  (a)  On or before December 31 of each year, a registrant shall renew its registration for the next calendar year and shall pay to the commissioner a renewal fee in an amount not to exceed $500 as determined by the finance commission.  To renew a registration, a registrant must continue to meet all standards for registration provided by this chapter.
(b)  If a registrant fails to file a renewal and pay the renewal fee on or before December 31 of a calendar year, the registrant's registration is considered expired at that time and the registrant:
(1)  must reapply for registration as provided by Section 158.053; and
(2)  may not conduct business as a residential mortgage loan servicer until the registration is approved.
(c)  The commissioner may refuse to renew a registration if the registrant:
(1)  has failed to pay any fees or penalties imposed under this chapter;
(2)  has failed to provide the surety bond required under this chapter; or
(3)  is not in compliance with any final order of the commissioner.
Added by Acts 2011, 82nd Leg., R.S., Ch. 588 (S.B. 17), Sec. 1, eff. September 1, 2011.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 158 - Residential Mortgage Loan Servicers › Subchapter B. Registration of Residential Mortgage Loan Servicers › Section 158.059. Revocation of Registration

Sec. 158.059.  REVOCATION OF REGISTRATION.  The commissioner may, after notice and hearing, revoke a registration under this chapter if:
(1)  the registrant fails or refuses to comply with the commissioner's written request for a response to a complaint;
(2)  the commissioner determines that the registrant 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 fraudulent, deceptive, or dishonest dealings; or
(3)  the registrant is not in compliance with any final order of the commissioner.
Added by Acts 2011, 82nd Leg., R.S., Ch. 588 (S.B. 17), Sec. 1, eff. September 1, 2011.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 158 - Residential Mortgage Loan Servicers › Subchapter B. Registration of Residential Mortgage Loan Servicers › Section 158.060. Appeal of Certain Commissioner Actions

Sec. 158.060.  APPEAL OF CERTAIN COMMISSIONER ACTIONS.  The denial, nonrenewal, or revocation by the commissioner of a registration under this chapter and the appeal of that action are governed by Chapter 2001, Government Code.
Added by Acts 2011, 82nd Leg., R.S., Ch. 588 (S.B. 17), Sec. 1, eff. September 1, 2011.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 158 - Residential Mortgage Loan Servicers › Subchapter C. Investigations, Complaints, and Actions Against Registrant › Section 158.101. Disclosure Statement

Sec. 158.101.  DISCLOSURE STATEMENT.  A registrant shall provide to the borrower of each residential mortgage loan the following notice not later than the 30th day after the registrant commences servicing the loan:
"COMPLAINTS REGARDING THE SERVICING OF YOUR MORTGAGE SHOULD BE SENT TO THE DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, ______________________________ (street address of the Department of Savings and Mortgage Lending).  A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT _______________ (telephone number of the Department of Savings and Mortgage Lending's toll-free consumer hotline)."
Added by Acts 2011, 82nd Leg., R.S., Ch. 588 (S.B. 17), Sec. 1, eff. September 1, 2011.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 158 - Residential Mortgage Loan Servicers › Subchapter C. Investigations, Complaints, and Actions Against Registrant › Section 158.102. Investigation of Complaints Against Registrant; Surcharge

Sec. 158.102.  INVESTIGATION OF COMPLAINTS AGAINST REGISTRANT; SURCHARGE.  (a)  On receipt of a signed written complaint concerning a registrant by the Department of Savings and Mortgage Lending, the commissioner or the commissioner's designee:
(1)  shall notify the representative designated by the registrant in the registration application in writing of the complaint and provide a copy of the complaint to the representative;
(2)  may conduct an investigation with authority to access, receive, and use in the investigation any books, accounts, records, files, documents, information, or other evidence; and
(3)  may request that the registrant provide documentary and other evidence considered by the commissioner necessary to effectively evaluate the complaint, including correspondence, loan documents, and disclosures.
(b)  A registrant shall promptly provide any evidence requested by the commissioner.
(c)  Information obtained by the commissioner during an investigation is confidential unless disclosure of the information is permitted or required by other law or court order.  The commissioner may share information gathered during an investigation with any state or federal agency.
(d)  In addition to the registration fee, the finance commission by rule may impose a complaint investigation fee on a registrant based on the costs incurred by the Department of Savings and Mortgage Lending resulting from the investigation of complaints against the registrant.
Added by Acts 2011, 82nd Leg., R.S., Ch. 588 (S.B. 17), Sec. 1, eff. September 1, 2011.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 158 - Residential Mortgage Loan Servicers › Subchapter C. Investigations, Complaints, and Actions Against Registrant › Section 158.103. Action on Complaint

Sec. 158.103.  ACTION ON COMPLAINT.  (a)  If, after conducting an investigation, the commissioner determines that the registrant has violated this chapter or another applicable law, the commissioner may do one or more of the following:
(1)  issue an order to the registrant to resolve the complaint by paying to the consumer the damages to which the consumer would be entitled under law; or
(2)  order the registrant to cease and desist from the actions found to be in violation of law.
(b)  A registrant may appeal an order issued under this section.  The appeal is a contested case governed by Chapter 2001, Government Code.
Added by Acts 2011, 82nd Leg., R.S., Ch. 588 (S.B. 17), Sec. 1, eff. September 1, 2011.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 158 - Residential Mortgage Loan Servicers › Subchapter C. Investigations, Complaints, and Actions Against Registrant › Section 158.104. Multi-State Examination Authority

Sec. 158.104.  MULTI-STATE EXAMINATION AUTHORITY.  To ensure that residential mortgage loan servicers to whom this chapter applies operate in this state in compliance with this chapter and with other law in accordance with this chapter, the commissioner or the commissioner's designee may participate in multi-state mortgage examinations as scheduled by the Conference of State Bank Supervisors Multi-State Mortgage Committee or by the Consumer Financial Protection Bureau in accordance with the protocol for such examinations.
Added by Acts 2011, 82nd Leg., R.S., Ch. 588 (S.B. 17), Sec. 1, eff. September 1, 2011.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 160 (S.B. 1004), Sec. 83, eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 158 - Residential Mortgage Loan Servicers › Subchapter C. Investigations, Complaints, and Actions Against Registrant › Section 158.1045. Issuance and Enforcement of Subpoena

Sec. 158.1045.  ISSUANCE AND ENFORCEMENT OF SUBPOENA.  (a)  During an investigation, the commissioner may issue a subpoena that is addressed to a peace officer of this state or other person authorized by law to serve citation or perfect service.  The subpoena may require a person to give a deposition, produce documents, or both.
(b)  If a person disobeys a subpoena or if a person appearing in a deposition in connection with the investigation refuses to testify, the commissioner may petition a district court in Travis County to issue an order requiring the person to obey the subpoena, testify, or produce documents relating to the matter.  The court shall promptly set an application to enforce a subpoena issued under Subsection (a) for hearing and shall cause notice of the application and the hearing to be served on the person to whom the subpoena is directed.
Added by Acts 2017, 85th Leg., R.S., Ch. 168 (H.B. 2823), Sec. 1, eff. May 26, 2017.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 158 - Residential Mortgage Loan Servicers › Subchapter C. Investigations, Complaints, and Actions Against Registrant › Section 158.105. Cease and Desist Order

Sec. 158.105.  CEASE AND DESIST ORDER.  (a)  If the commissioner has reasonable cause to believe that a person who is not registered or exempt under this chapter has engaged, or is about to engage, in an act or practice for which registration is required under this chapter, the commissioner may issue without notice and hearing an order to cease and desist from continuing a particular action or an order to take affirmative action, or both, to enforce compliance with this chapter.
(b)  An order issued under Subsection (a) must contain a reasonably detailed statement of the facts on which the order is issued.
(c)  If, not later than the 30th day after the date an order is issued under this section, the person against whom the order is made requests a hearing, the commissioner shall set and give notice of a hearing before the commissioner or a hearings officer.  The hearing shall be governed by Chapter 2001, Government Code.
(d)  If a hearing is not requested under Subsection (c) not later than the 30th day after the date the order is issued, the order is considered final and not appealable.
(e)  The commissioner, after giving notice, may impose against a person who violates a cease and desist order an administrative penalty in an amount not to exceed $2,500 for each day of the violation.  In addition to any other remedy provided by law, the commissioner may institute in district court a suit for injunctive relief and to collect the administrative penalty.  A bond is not required of the commissioner with respect to injunctive relief granted under this subsection.
Added by Acts 2011, 82nd Leg., R.S., Ch. 588 (S.B. 17), Sec. 1, eff. September 1, 2011.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 158 - Residential Mortgage Loan Servicers › Subchapter C. Investigations, Complaints, and Actions Against Registrant › Section 158.106. Restitution

Sec. 158.106.  RESTITUTION.  The commissioner may order a residential mortgage loan servicer to pay to a complainant any compensation received by the servicer in a violation cited by the commissioner in a final order.
Added by Acts 2011, 82nd Leg., R.S., Ch. 588 (S.B. 17), Sec. 1, eff. September 1, 2011.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 159 - Wrap Mortgage Loan Financing › Subchapter A. General Provisions › Section 159.001. Definitions

Sec. 159.001.  DEFINITIONS.  In this chapter:
(1)  "Commissioner" means the savings and mortgage lending commissioner.
(2)  "Finance commission" means the Finance Commission of Texas.
(3)  "Residential mortgage loan" has the meaning assigned by Section 180.002.
(4)  "Residential real estate" has the meaning assigned by Section 180.002.
(5)  "Wrap borrower" means a person obligated to pay a wrap mortgage loan.
(6)  "Wrap lender" means:
(A)  a person who makes a wrap mortgage loan; or
(B)  an owner of residential real estate who contracts with another person to make a wrap mortgage loan to a wrap borrower on the owner's behalf to finance the purchase of the owner's residential real estate.
(7)  "Wrap mortgage loan" means a residential mortgage loan:
(A)  made to finance the purchase of residential real estate that will continue to be subject to an unreleased lien that:
(i)  attached to the residential real estate before the loan was made; and
(ii)  secures a debt incurred by a person other than the wrap borrower that was not paid off at the time the loan was made; and
(B)  obligating the wrap borrower to the wrap lender for payment of a debt the principal amount of which includes:
(i)  the outstanding balance of the debt described by Paragraph (A)(ii); and
(ii)  any remaining amount of the purchase price financed by the wrap lender.
Added by Acts 2021, 87th Leg., R.S., Ch. 76 (S.B. 43), Sec. 3, eff. January 1, 2022.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 159 - Wrap Mortgage Loan Financing › Subchapter A. General Provisions › Section 159.002. Inapplicability of Chapter

Sec. 159.002.  INAPPLICABILITY OF CHAPTER.  (a)  In this section, "unimproved residential real estate" means residential real estate on which a dwelling has not been constructed.
(b)  Notwithstanding any other provision of this chapter, this chapter does not apply to a wrap mortgage loan:
(1)  made by or on behalf of an owner of unimproved residential real estate to a purchaser of that residential real estate if:
(A)  the residential real estate purchased will not continue to be subject to any unreleased lien described by Section 159.001(7)(A) that secures a debt that is subject to a due-on-sale clause in connection with which the lienholder may foreclose the lien; or
(B)  the residential real estate purchased will continue to be subject to an unreleased lien described by Paragraph (A) and the holder of that unreleased lien has consented to the sale of the residential real estate; or
(2)  for a sale of residential real estate that is the wrap lender's homestead.
Added by Acts 2021, 87th Leg., R.S., Ch. 76 (S.B. 43), Sec. 3, eff. January 1, 2022.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 159 - Wrap Mortgage Loan Financing › Subchapter A. General Provisions › Section 159.003. Exemptions

Sec. 159.003.  EXEMPTIONS.  (a)  The following persons are exempt from this chapter:
(1)  a federally insured bank, savings bank, savings and loan association, Farm Credit System Institution, or credit union;
(2)  a subsidiary of a federally insured bank, savings bank, savings and loan association, Farm Credit System Institution, or credit union;
(3)  the state or a governmental agency, political subdivision, or other instrumentality of the state, or an employee of the state or a governmental agency, political subdivision, or instrumentality of the state who is acting within the scope of the person's employment; or
(4)  subject to Subsection (b), an owner of residential real estate if the owner does not in any 12-consecutive-month period make, or contract with another person to make, more than three wrap mortgage loans to purchasers of the property for all or part of the purchase price of the residential real estate against which the mortgage is secured.
(b)  In determining eligibility for an exemption under Subsection (a)(4), two or more owners of residential real estate are considered a single owner for the purpose of computing the number of mortgage loans made within the period specified by that subdivision if any of the owners are an entity or an affiliate of an entity, including a general partnership, limited partnership, limited liability company, or corporation, as defined by Section 1.002, Business Organizations Code.
Added by Acts 2021, 87th Leg., R.S., Ch. 76 (S.B. 43), Sec. 3, eff. January 1, 2022.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 159 - Wrap Mortgage Loan Financing › Subchapter B. Licensing or Registration › Section 159.051. License or Registration Required

Sec. 159.051.  LICENSE OR REGISTRATION REQUIRED.  A person may not originate or make a wrap mortgage loan unless the person is licensed or registered to originate or make residential mortgage loans under Chapter 156, 157, or 342 or is exempt from licensing or registration as provided under an applicable provision of those chapters.
Added by Acts 2021, 87th Leg., R.S., Ch. 76 (S.B. 43), Sec. 3, eff. January 1, 2022.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 159 - Wrap Mortgage Loan Financing › Subchapter C. Transaction Requirements; Remedies › Section 159.101. Disclosure Statement; Option to Rescind

Sec. 159.101.  DISCLOSURE STATEMENT; OPTION TO RESCIND.  (a)  A wrap lender must, on or before the seventh day before the wrap mortgage loan agreement is entered into, provide to the wrap borrower a separate written disclosure statement in at least 12-point type that:
(1)  contains the information required for a written disclosure statement under Section 5.016, Property Code; and
(2)  includes a statement in a form substantially similar to the following:
NOTICE REGARDING PROPERTY INSURANCE:  ANY INSURANCE MAINTAINED BY A SELLER, LENDER, OR OTHER PERSON WHO IS NOT THE BUYER OF THIS PROPERTY MAY NOT PROVIDE COVERAGE TO THE BUYER IF THE BUYER SUFFERS A LOSS OR INCURS LIABILITY IN CONNECTION WITH THE PROPERTY.  TO ENSURE THE BUYER'S INTERESTS ARE PROTECTED, THE BUYER SHOULD PURCHASE THE BUYER'S OWN PROPERTY INSURANCE.  BEFORE PURCHASING THIS PROPERTY, YOU MAY WISH TO CONSULT AN INSURANCE AGENT REGARDING THE INSURANCE COVERAGE AVAILABLE TO YOU AS A BUYER OF THE PROPERTY.
(b)  The disclosure statement required under Subsection (a) must be dated and signed by the wrap borrower when the wrap borrower receives the statement.
(c)  The finance commission by rule shall adopt a model disclosure statement that satisfies the requirements of Subsection (a).
(d)  If the disclosure statement required under Subsection (a) and any disclosure required by Section 159.102 are received by the wrap borrower on or before the closing date of the wrap mortgage loan, the wrap borrower may rescind the wrap mortgage loan agreement and any related purchase agreement or other agreement relating to the loan transaction not later than the seventh day after the date of receipt of the disclosure statement, regardless of whether the disclosure is timely made.  On rescission under this subsection, the wrap borrower is entitled to a return of any earnest money, escrow amounts, down payment, or other fees or charges paid in connection with the wrap mortgage loan, the related purchase transaction, and any other related transaction.
Added by Acts 2021, 87th Leg., R.S., Ch. 76 (S.B. 43), Sec. 3, eff. January 1, 2022.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 159 - Wrap Mortgage Loan Financing › Subchapter C. Transaction Requirements; Remedies › Section 159.102. Foreign Language Requirement

Sec. 159.102.  FOREIGN LANGUAGE REQUIREMENT.  If the negotiations that precede the execution of the wrap mortgage loan agreement are conducted primarily in a language other than English, the wrap lender shall provide a copy of a written disclosure statement required under Section 159.101 of this code or Section  5.016, Property Code, in that language to the wrap borrower.
Added by Acts 2021, 87th Leg., R.S., Ch. 76 (S.B. 43), Sec. 3, eff. January 1, 2022.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 159 - Wrap Mortgage Loan Financing › Subchapter C. Transaction Requirements; Remedies › Section 159.103. Failure to Provide Disclosure: Tolling of Limitations

Sec. 159.103.  FAILURE TO PROVIDE DISCLOSURE: TOLLING OF LIMITATIONS.  If a wrap lender fails to provide the disclosure statement as required by Section 159.101 or fails to provide the disclosure statement in the language required by Section 159.102, the limitations period applicable to any cause of action of the wrap borrower against the wrap lender arising out of the wrap lender's violation of a law of this state in connection with the wrap mortgage loan transaction is tolled until the 120th day after the date the required disclosure statement is provided.
Added by Acts 2021, 87th Leg., R.S., Ch. 76 (S.B. 43), Sec. 3, eff. January 1, 2022.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 159 - Wrap Mortgage Loan Financing › Subchapter C. Transaction Requirements; Remedies › Section 159.104. Failure to Provide Disclosure Before Closing; Right of Rescission

Sec. 159.104.  FAILURE TO PROVIDE DISCLOSURE BEFORE CLOSING; RIGHT OF RESCISSION.  (a)  Subject to Subsection (b), if a wrap mortgage loan is closed without the wrap lender providing the disclosure statement required by Section 159.101 or any disclosure required by Section 159.102, the wrap borrower may rescind the wrap mortgage loan agreement and the related purchase agreement at any time by providing the wrap lender notice of rescission in writing.
(b)  If the wrap borrower receives a required disclosure statement under Section 159.101 or 159.102 after the date the wrap mortgage loan is closed but before the wrap borrower provides notice of rescission, the wrap borrower may rescind the wrap mortgage loan agreement and the related purchase agreement in writing on or before the 21st day after the date of receipt of the disclosure statement.
(c)  Not later than the 30th day after the date the wrap borrower provides notice of rescission under this section, the wrap lender shall return to the wrap borrower:
(1)  all principal and interest payments made by the wrap borrower on the wrap mortgage loan;
(2)  any money or property given as earnest money, a down payment, or otherwise in connection with the wrap mortgage loan or related purchase transaction; and
(3)  any escrow amounts for the wrap mortgage loan or related purchase transaction.
(d)  On the date on which all of the returned money or property described by Subsection (c) is received by the wrap borrower, the wrap borrower shall convey to the wrap lender or the wrap lender's designee the residential real estate described by Section 159.001(7)(A).  The wrap borrower shall surrender possession of the residential real estate not later than the 30th day after the date of the wrap borrower's receipt of the money or property returned as described by this subsection.
(e)  Notwithstanding Subsection (a) or (b), the wrap lender may avoid rescission if not later than the 30th day after the date of receipt of notice of rescission under Subsection (a), the wrap lender:
(1)  pays the outstanding balance due on any debt described by Section 159.001(7)(A)(ii);
(2)  pays any due and unpaid taxes or other government assessment on the residential real estate described by Section 159.001(7)(A);
(3)  pays to the wrap borrower as damages for noncompliance the sum of $1,000 and any reasonable attorney's fees incurred by the wrap borrower; and
(4)  provides to the wrap borrower evidence of compliance with Subdivisions (1) and (2).
Added by Acts 2021, 87th Leg., R.S., Ch. 76 (S.B. 43), Sec. 3, eff. January 1, 2022.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 159 - Wrap Mortgage Loan Financing › Subchapter C. Transaction Requirements; Remedies › Section 159.105. Enforceability of Wrap Lien

Sec. 159.105.  ENFORCEABILITY OF WRAP LIEN.  A lien securing a wrap mortgage loan is void unless the wrap mortgage loan and the conveyance of the residential real estate securing the loan are closed by an attorney or a title company.
Added by Acts 2021, 87th Leg., R.S., Ch. 76 (S.B. 43), Sec. 3, eff. January 1, 2022.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 159 - Wrap Mortgage Loan Financing › Subchapter C. Transaction Requirements; Remedies › Section 159.106. Borrower's Right of Action

Sec. 159.106.  BORROWER'S RIGHT OF ACTION.  (a)  A wrap borrower may bring an action to:
(1)  obtain declaratory or injunctive relief to enforce this subchapter;
(2)  recover any actual damages suffered by the wrap borrower as a result of a violation of this subchapter; or
(3)  obtain other remedies available under this subchapter or in an action under Section 17.50, Business & Commerce Code, as otherwise authorized under this subchapter.
(b)  A wrap borrower who prevails in an action under this section may recover court costs and reasonable attorney's fees.
Added by Acts 2021, 87th Leg., R.S., Ch. 76 (S.B. 43), Sec. 3, eff. January 1, 2022.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 159 - Wrap Mortgage Loan Financing › Subchapter C. Transaction Requirements; Remedies › Section 159.107. Waiver or Avoidance Prohibited

Sec. 159.107.  WAIVER OR AVOIDANCE PROHIBITED.  (a)  Any purported waiver of a right of a wrap borrower under this subchapter or purported exemption of a person from liability for a violation of this subchapter is void.
(b)  A person who is a party to a residential real estate transaction may not evade the application of this subchapter by any device, subterfuge, or pretense, and any attempt to do so is void and a deceptive trade practice under Subchapter E, Chapter 17, Business & Commerce Code, and is actionable under that subchapter.
Added by Acts 2021, 87th Leg., R.S., Ch. 76 (S.B. 43), Sec. 3, eff. January 1, 2022.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 159 - Wrap Mortgage Loan Financing › Subchapter C. Transaction Requirements; Remedies › Section 159.108. Rulemaking Authority

Sec. 159.108.  RULEMAKING AUTHORITY.  The finance commission may adopt and enforce rules necessary for the intent of or to ensure compliance with this subchapter.
Added by Acts 2021, 87th Leg., R.S., Ch. 76 (S.B. 43), Sec. 3, eff. January 1, 2022.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 159 - Wrap Mortgage Loan Financing › Subchapter D. Duties Owed to Wrap Borrower › Section 159.151. Money Held in Trust

Sec. 159.151.  MONEY HELD IN TRUST.  A person who collects or receives a payment from a wrap borrower under the terms of a wrap mortgage loan holds the money in trust for the benefit of the borrower.
Added by Acts 2021, 87th Leg., R.S., Ch. 76 (S.B. 43), Sec. 3, eff. January 1, 2022.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 159 - Wrap Mortgage Loan Financing › Subchapter D. Duties Owed to Wrap Borrower › Section 159.152. Fiduciary Duty

Sec. 159.152.  FIDUCIARY DUTY.  A person who collects or receives a payment from a wrap borrower under the terms of or in connection with a wrap mortgage loan owes a fiduciary duty to the wrap borrower to use the payment to satisfy the obligations of the obligee under each debt described by Section 159.001(7)(A)(ii) and the payment of taxes and insurance for which the wrap lender has received any payments from the wrap borrower.
Added by Acts 2021, 87th Leg., R.S., Ch. 76 (S.B. 43), Sec. 3, eff. January 1, 2022.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 159 - Wrap Mortgage Loan Financing › Subchapter E. Wrap Borrower's Rights › Section 159.201. Applicability of Subchapter

Sec. 159.201.  APPLICABILITY OF SUBCHAPTER.  This subchapter applies only to a wrap mortgage loan for a purchase of residential real estate to be used as the wrap borrower's residence.
Added by Acts 2021, 87th Leg., R.S., Ch. 76 (S.B. 43), Sec. 3, eff. January 1, 2022.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 159 - Wrap Mortgage Loan Financing › Subchapter E. Wrap Borrower's Rights › Section 159.202. Wrap Borrower's Right to Deduct

Sec. 159.202.  WRAP BORROWER'S RIGHT TO DEDUCT.  The wrap borrower, without taking judicial action, may deduct from any amount owed to the wrap lender under the terms of the wrap mortgage loan:
(1)  the amount of any payment made by the wrap borrower to an obligee of a debt described by Section 159.001(7)(A)(ii) to cure a default by the wrap lender caused by the lender's failure to make payments for which the lender is responsible under the terms of the wrap mortgage loan; or
(2)  any other amount for which the wrap lender is liable to the wrap borrower under the terms of the wrap mortgage loan.
Added by Acts 2021, 87th Leg., R.S., Ch. 76 (S.B. 43), Sec. 3, eff. January 1, 2022.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 159 - Wrap Mortgage Loan Financing › Subchapter F. Enforcement of Certain Registration Requirements › Section 159.251. Applicability of Subchapter

Sec. 159.251.  APPLICABILITY OF SUBCHAPTER.  This subchapter applies only to a wrap lender who is required to register as a residential mortgage loan servicer under Chapter 158.
Added by Acts 2021, 87th Leg., R.S., Ch. 76 (S.B. 43), Sec. 3, eff. January 1, 2022.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 159 - Wrap Mortgage Loan Financing › Subchapter F. Enforcement of Certain Registration Requirements › Section 159.252. Inspection; Investigation

Sec. 159.252.  INSPECTION; INVESTIGATION.  (a)  The commissioner may conduct an inspection of a wrap lender registered under Chapter 158 as the commissioner determines necessary to determine whether the wrap lender is complying with that chapter and applicable rules.  The inspection may include an inspection of the books, records, documents, operations, and facilities of the wrap lender.  The commissioner may share evidence of criminal activity gathered during an inspection or investigation with any state or federal law enforcement agency.
(b)  For reasonable cause, the commissioner at any time may investigate a wrap lender registered under Chapter 158 to determine whether the lender is complying with that chapter and applicable rules.
(c)  The commissioner may conduct an undercover or covert investigation only if the commissioner, after due consideration of the circumstances, determines that the investigation is necessary to prevent immediate harm and to carry out the purposes of Chapter 158.
(d)  The finance commission by rule shall provide guidelines to govern an inspection or investigation under this section, including rules to:
(1)  determine the information and records of the wrap lender to which the commissioner may demand access during an inspection or investigation; and
(2)  establish what constitutes reasonable cause for an investigation.
(e)  Information obtained by the commissioner during an inspection or investigation under this section is confidential unless disclosure of the information is permitted or required by other law.
(f)  The commissioner may share information gathered during an investigation under this section with a state or federal agency.  The commissioner may share information gathered during an inspection with a state or federal agency only if the commissioner determines there is a valid reason for the sharing.
(g)  The commissioner may require reimbursement of expenses for each examiner for an on-site examination or inspection of a registered wrap lender under this section if records are located out of state and are not made available for examination or inspection by the examiner in this state.  The finance commission by rule shall set the maximum amount for the reimbursement of expenses authorized under this subsection.
Added by Acts 2021, 87th Leg., R.S., Ch. 76 (S.B. 43), Sec. 3, eff. January 1, 2022.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 159 - Wrap Mortgage Loan Financing › Subchapter F. Enforcement of Certain Registration Requirements › Section 159.253. Issuance and Enforcement of Subpoena

Sec. 159.253.  ISSUANCE AND ENFORCEMENT OF SUBPOENA.  (a)  During an investigation conducted under this subchapter, the commissioner may issue a subpoena that is addressed to a peace officer of this state or other person authorized by law to serve citation or perfect service.  The subpoena may require a person to give a deposition, produce documents, or both.
(b)  If a person disobeys a subpoena or if a person appearing in a deposition in connection with the investigation refuses to testify, the commissioner may petition a district court in Travis County to issue an order requiring the person to obey the subpoena, testify, or produce documents relating to the matter.  The court shall promptly set an application to enforce a subpoena issued under Subsection (a) for hearing and shall cause notice of the application and the hearing to be served on the person to whom the subpoena is directed.
Added by Acts 2021, 87th Leg., R.S., Ch. 76 (S.B. 43), Sec. 3, eff. January 1, 2022.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 159 - Wrap Mortgage Loan Financing › Subchapter G. Enforcement of Chapter › Section 159.301. Cease and Desist Order

Sec. 159.301.  CEASE AND DESIST ORDER.  (a)  The commissioner, if the commissioner has reasonable cause to believe that a wrap lender or wrap mortgage loan originator to whom this chapter applies has violated or is about to violate this chapter, may issue without notice and hearing an order to cease and desist from continuing a particular action or an order to take affirmative action, or both, to enforce compliance with this chapter.
(b)  An order issued under Subsection (a) must contain a reasonably detailed statement of the facts on which the order is made.  If a person against whom the order is made requests a hearing, the commissioner shall set and give notice of a hearing before the commissioner or a hearings officer.  The hearing shall be governed by Chapter 2001, Government Code.  Based on the findings of fact, conclusions of law, and recommendations of the hearings officer, the commissioner by order may find a violation has occurred or not occurred.
(c)  If a hearing is not requested under Subsection (b) on or before the 30th day after the date on which an order is made, the order is considered final and not appealable.
(d)  The commissioner, after giving notice and an opportunity for hearing, may impose against a person who violates a cease and desist order an administrative penalty in an amount not to exceed $1,000 for each day of the violation.  In addition to any other remedy provided by law, the commissioner may institute in district court a suit for injunctive relief and to collect the administrative penalty.  A bond is not required of the commissioner with respect to injunctive relief granted under this subsection.
Added by Acts 2021, 87th Leg., R.S., Ch. 76 (S.B. 43), Sec. 3, eff. January 1, 2022.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 160 - Digital Asset Service Providers › Section 160.001. Definitions

Sec. 160.001.  DEFINITIONS.  In this chapter:
(1)  "Commission" means the Finance Commission of Texas.
(2)  "Customer funds" means the digital assets, fiat currency, or other property deposited by a digital asset customer.
(3)  "Department" means the Texas Department of Banking.
(4)  "Digital asset" means a natively electronic asset that confers economic, proprietary, or access rights and is recorded or stored in a blockchain, cryptographically secured distributed ledger, or similar technology, and includes:
(A)  a digital asset that the laws of any country consider to be legal tender; or
(B)  virtual currency as defined by Section 12.001, Business & Commerce Code.
(5)  "Digital asset customer" means a person who deposits fiat currency or a digital asset with a digital asset service provider.
(6)  "Digital asset service provider" means an electronic platform that facilitates the trading of digital assets on behalf of a digital asset customer and maintains custody of the customer's digital assets.
Added by Acts 2023, 88th Leg., R.S., Ch. 419 (H.B. 1666), Sec. 1, eff. September 1, 2023.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 160 - Digital Asset Service Providers › Section 160.002. Administration

Sec. 160.002.  ADMINISTRATION.  The department shall administer this chapter.
Added by Acts 2023, 88th Leg., R.S., Ch. 419 (H.B. 1666), Sec. 1, eff. September 1, 2023.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 160 - Digital Asset Service Providers › Section 160.003. Applicability

Sec. 160.003.  APPLICABILITY.  (a)  This chapter applies to a digital asset service provider doing business in this state that:
(1)  holds a money transmission license under Subchapter D, Chapter 151; and
(2)  either:
(A)  serves more than 500 digital asset customers in this state; or
(B)  has at least $10 million in customer funds.
(b)  This chapter does not apply to:
(1)  a bank, as defined by Section 31.002; or
(2)  an entity excluded by commission rule or by order of the banking commissioner based on a finding that the entity is:
(A)  not required to hold a money transmission license under Subchapter D, Chapter 151; or
(B)  not subject to the requirements of this chapter.
Added by Acts 2023, 88th Leg., R.S., Ch. 419 (H.B. 1666), Sec. 1, eff. September 1, 2023.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 160 - Digital Asset Service Providers › Section 160.005. Requirements for Money Transmission License

Sec. 160.005.  REQUIREMENTS FOR MONEY TRANSMISSION LICENSE.  (a)  In addition to any other requirements under Subchapter D, Chapter 151, a digital asset service provider must comply with the requirements of this chapter to obtain and maintain any money transmission license under Subchapter D, Chapter 151.  A digital asset service provider applying for a new money transmission license under Subchapter D, Chapter 151, must submit to the department the report required by Section 160.004(d).
(b)  The department may suspend and revoke a money transmission license issued under Subchapter D, Chapter 151, to a digital asset service provider if the provider violates the requirements of this chapter.
(c)  The department may impose any penalty under Subchapter H, Chapter 151, that the department may impose on a person who violates that chapter on a digital asset service provider who violates this chapter.
(d)  The commissioner may examine a digital asset service provider in the same manner as allowed under Subchapter G, Chapter 151.  Information disclosed to the commissioner in connection with an examination under this section is confidential information and subject to the provisions regarding confidentiality under Subchapter G, Chapter 151.
Added by Acts 2023, 88th Leg., R.S., Ch. 419 (H.B. 1666), Sec. 1, eff. September 1, 2023.