reglab/statecodes huggingface dataset:
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 156 - Residential Mortgage Loan Companies › Subchapter C. Residential Mortgage Loan Company Licenses and Registration › Section 156.206. Criminal and Other Background Checks

Sec. 156.206.  CRIMINAL AND OTHER BACKGROUND CHECKS.  (a)  Repealed by Acts 2013, 83rd Leg., R.S., Ch. 160, Sec. 87(5), eff. September 1, 2013.
(b)  The commissioner shall conduct criminal background and credit history checks on a person required to be licensed under this chapter.
(c)  The commissioner shall keep confidential any background information obtained under this section and may not release or disclose the information unless:
(1)  the information is a public record at the time the commissioner obtains the information; or
(2)  the commissioner releases the information:
(A)  under order from a court; or
(B)   to a governmental agency.
(d)  Notwithstanding Subsection (c), criminal history record information obtained from the Federal Bureau of Investigation may be released or disclosed only to a governmental entity or as authorized by federal statute, federal rule, or federal executive order.
Added by Acts 1999, 76th Leg., ch. 1254, Sec. 2, eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 337, Sec. 5, eff. Sept. 1, 2001;  Acts 2001, 77th Leg., ch. 407, Sec. 2, eff. Sept. 1, 2001;  Acts 2001, 77th Leg., ch. 867, Sec. 88, eff. Sept. 1, 2001;  Acts 2003, 78th Leg., ch. 173, Sec. 1, 2, eff. Sept. 1, 2003;  Acts 2003, 78th Leg., ch. 296, Sec. 11, 12, eff. Sept. 1, 2003.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 655 (S.B. 1124), Sec. 18, eff. September 1, 2011.
Acts 2011, 82nd Leg., R.S., Ch. 655 (S.B. 1124), Sec. 19, eff. September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 160 (S.B. 1004), Sec. 26, eff. September 1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 160 (S.B. 1004), Sec. 87(5), eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 156 - Residential Mortgage Loan Companies › Subchapter C. Residential Mortgage Loan Company Licenses and Registration › Section 156.207. Issuance of License

Sec. 156.207.  ISSUANCE OF LICENSE.  (a)  The commissioner shall issue a license to an applicant for a residential mortgage loan company license if the commissioner finds that the applicant meets all requirements and conditions for the license.
(b)  Repealed by Acts 2013, 83rd Leg., R.S., Ch. 160, Sec. 87(5), eff. September 1, 2013.
(c)  Repealed by Acts 2013, 83rd Leg., R.S., Ch. 160, Sec. 87(5), eff. September 1, 2013.
(d)  Repealed by Acts 2013, 83rd Leg., R.S., Ch. 160, Sec. 87(5), eff. September 1, 2013.
Added by Acts 1999, 76th Leg., ch. 1254, Sec. 2, eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 337, Sec. 6, eff. Sept. 1, 2001;  Acts 2001, 77th Leg., ch. 867, Sec. 89, eff. Sept. 1, 2001.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 655 (S.B. 1124), Sec. 21, eff. September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 160 (S.B. 1004), Sec. 27, eff. September 1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 160 (S.B. 1004), Sec. 87(5), eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 156 - Residential Mortgage Loan Companies › Subchapter C. Residential Mortgage Loan Company Licenses and Registration › Section 156.2081. Reinstatement After Expiration

Sec. 156.2081.  REINSTATEMENT AFTER EXPIRATION.  (a)  A person whose license has expired may not engage in activities that require a license until the license has been renewed.
(b)  A person who is otherwise eligible to renew a license, but has not done so before January 1, may renew the license before March 1 by paying the commissioner a reinstatement fee in an amount equal to 150 percent of the required renewal fee.
(c)  Repealed by Acts 2013, 83rd Leg., R.S., Ch. 160, Sec. 87(5), eff. September 1, 2013.
(d)  Repealed by Acts 2011, 82nd Leg., R.S., Ch. 655, Sec. 65(a)(8), eff. September 1, 2011.
(e)  Repealed by Acts 2011, 82nd Leg., R.S., Ch. 655, Sec. 65(a)(8), eff. September 1, 2011.
Added by Acts 2001, 77th Leg., ch. 337, Sec. 8, eff. Sept. 1, 2001.
Amended by:
Acts 2005, 79th Leg., Ch. 1018 (H.B. 955), Sec. 6.10, eff. September 1, 2005.
Acts 2011, 82nd Leg., R.S., Ch. 655 (S.B. 1124), Sec. 23, eff. September 1, 2011.
Acts 2011, 82nd Leg., R.S., Ch. 655 (S.B. 1124), Sec. 24, eff. September 1, 2011.
Acts 2011, 82nd Leg., R.S., Ch. 655 (S.B. 1124), Sec. 65(a)(8), eff. September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 160 (S.B. 1004), Sec. 87(5), eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 156 - Residential Mortgage Loan Companies › Subchapter C. Residential Mortgage Loan Company Licenses and Registration › Section 156.209. Denial of Applications and Renewals

Sec. 156.209.  DENIAL OF APPLICATIONS AND RENEWALS.  (a)  If the commissioner declines or fails to issue or renew a license, the commissioner shall promptly give written notice to the applicant or the person requesting the renewal that the application or renewal, as appropriate, was denied.
(b)  Before the applicant or person requesting the renewal may appeal to a district court as provided by Section 156.401, the applicant or person must file with the commissioner, not later than the 10th day after the date on which notice under Subsection (a) is received, an appeal of the ruling requesting a time and place for a hearing before a hearings officer designated by the commissioner.
(c)  The designated hearings officer shall set the time and place for a hearing requested under Subsection (b) not later than the 90th day after the date on which the appeal is received.  The hearings officer shall provide at least 10 days' notice of the hearing to the applicant or person requesting the renewal.  The time of the hearing may be continued periodically with the consent of the applicant or person requesting the renewal.  After the hearing, the commissioner shall enter an order from the findings of fact, conclusions of law, and recommendations of the hearings officer.
(d)  If an applicant or person requesting the renewal fails to request a hearing under this section, the commissioner's refusal to issue or renew a license is final and may not be subject to review by the courts.
(e)  A hearing held under this section is governed by Chapter 2001, Government Code.  An appeal of a final order issued under this section may be made in accordance with Section 156.401.
(f)  A person who requests a hearing under this section shall be required to pay a deposit to secure the payment of the costs of the hearing in an amount to be determined by the commissioner not to exceed $500.  The entire deposit shall be refunded to the person if the person prevails in the contested case hearing.  If the person does not prevail, any portion of the deposit in excess of the costs of the hearing assessed against that person shall be refundable.
(g)  A person whose application for or request to renew a license has been denied is not eligible to be licensed for a period of two years after the date the denial becomes final, or a shorter period as determined by the commissioner after evaluating the specific circumstances of the denial.  The finance commission may adopt rules to provide conditions for which the commissioner may shorten the period of ineligibility.
Added by Acts 1999, 76th Leg., ch. 1254, Sec. 2, eff. Sept. 1, 1999.
Amended by:
Acts 2005, 79th Leg., Ch. 1018 (H.B. 955), Sec. 6.11, eff. September 1, 2005.
Acts 2013, 83rd Leg., R.S., Ch. 160 (S.B. 1004), Sec. 29, eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 156 - Residential Mortgage Loan Companies › Subchapter C. Residential Mortgage Loan Company Licenses and Registration › Section 156.210. Conditional License

Sec. 156.210.  CONDITIONAL LICENSE.  The commissioner may issue a conditional license.  The finance commission by rule shall adopt reasonable terms and conditions for a conditional license.
Added by Acts 1999, 76th Leg., ch. 1254, Sec. 2, eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 867, Sec. 91, eff. Sept. 1, 2001.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 655 (S.B. 1124), Sec. 25, eff. September 1, 2011.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 156 - Residential Mortgage Loan Companies › Subchapter C. Residential Mortgage Loan Company Licenses and Registration › Section 156.211. Change of Address or Sponsorship; Modification of License

Sec. 156.211.  CHANGE OF ADDRESS OR SPONSORSHIP;  MODIFICATION OF LICENSE.  (a)  Before the 10th day preceding the effective date of an address change, a residential mortgage loan company shall notify the commissioner in writing of the new address accompanied by a change of address fee of $25.
(b)  When the sponsorship of a residential mortgage loan originator is terminated, the residential mortgage loan originator or the residential mortgage loan company shall immediately notify the commissioner.
(b-1)  Not later than the 10th day before a residential mortgage loan company begins doing business under an assumed name, the residential mortgage loan company shall file with the commissioner a copy of an assumed name certificate for each assumed name under which the residential mortgage loan company intends to conduct business and pay a $25 registration fee for each assumed name.
(b-2)  A person licensed under this chapter must notify the commissioner not later than the 10th day after the date of any change of the person's name for the issuance of an amended license.
(b-3)  A residential mortgage loan company licensed under this chapter that changes the company's qualifying individual shall notify the commissioner not later than the 10th business day after the date of the change.  The commissioner may charge a fee of $25 for each change of a designated representative.
(c)  A fee under this section is not refundable and may not be credited or applied to any other fee or indebtedness owed by the person paying the fee.
Added by Acts 1999, 76th Leg., ch. 1254, Sec. 2, eff. Sept. 1, 1999.
Amended by:
Acts 2005, 79th Leg., Ch. 1018 (H.B. 955), Sec. 6.12, eff. September 1, 2005.
Acts 2007, 80th Leg., R.S., Ch. 905 (H.B. 2783), Sec. 8, eff. September 1, 2007.
Acts 2011, 82nd Leg., R.S., Ch. 655 (S.B. 1124), Sec. 26, eff. September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 160 (S.B. 1004), Sec. 30, eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 156 - Residential Mortgage Loan Companies › Subchapter C. Residential Mortgage Loan Company Licenses and Registration › Section 156.212. Maintenance and Location of Offices

Sec. 156.212.  MAINTENANCE AND LOCATION OF OFFICES.   If a residential mortgage loan company maintains an office separate and distinct from the company's main office, whether located in this state or not, that conducts mortgage business with consumers of this state or regarding residential real estate in this state, the company shall apply for, pay a fee of $50 for, and obtain an additional license to be known as a branch office license for each additional office to be maintained by the company.
Added by Acts 1999, 76th Leg., ch. 1254, Sec. 2, eff. Sept. 1, 1999.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1317 (H.B. 2774), Sec. 29, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 655 (S.B. 1124), Sec. 27, eff. September 1, 2011.
Acts 2021, 87th Leg., R.S., Ch. 929 (H.B. 3617), Sec. 4, eff. September 1, 2021.
Acts 2021, 87th Leg., R.S., Ch. 963 (S.B. 1900), Sec. 7(1), eff. September 1, 2021.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 156 - Residential Mortgage Loan Companies › Subchapter C. Residential Mortgage Loan Company Licenses and Registration › Section 156.213. Mortgage Call Report

Sec. 156.213.  MORTGAGE CALL REPORT.  (a)  Each licensed residential mortgage loan company shall file a mortgage call report with the commissioner or the commissioner's authorized designee on a form prescribed by the commissioner or authorized designee.  The report:
(1)  is a statement of condition of the residential mortgage loan company and the company's operations, including financial statements and production activity volumes;
(2)  must include any other information required by the commissioner; and
(3)  must be filed as frequently as required by the commissioner.
(b)  Information contained in the mortgage call report related to residential mortgage loan origination volume or other trade information, including information used to determine statistical entries in the report related to loan origination volume, is confidential and may not be disclosed by the commissioner, the commissioner's authorized designee, or any other employee of the department.
Added by Acts 2001, 77th Leg., ch. 337, Sec. 9, eff. Sept. 1, 2001.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 655 (S.B. 1124), Sec. 28, eff. September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 160 (S.B. 1004), Sec. 31, eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 156 - Residential Mortgage Loan Companies › Subchapter D. License Revocation and Suspension and Other Actions Against License Holder › Section 156.3011. Issuance and Enforcement of Subpoena

Sec. 156.3011.  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 upon the person to whom the subpoena is directed.
Added by Acts 2005, 79th Leg., Ch. 1018 (H.B. 955), Sec. 6.14, eff. September 1, 2005.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 156 - Residential Mortgage Loan Companies › Subchapter D. License Revocation and Suspension and Other Actions Against License Holder › Section 156.302. Administrative Penalty

Sec. 156.302.  ADMINISTRATIVE PENALTY.  (a)  The commissioner, after notice and opportunity for hearing, may impose an administrative penalty on a person licensed under this chapter who violates this chapter or a rule or order adopted under this chapter.
(b)  The amount of the penalty may not exceed $25,000 for each violation.  The amount shall be based on:
(1)  the seriousness of the violation, including the nature, circumstances, extent, and gravity of the violation;
(2)  the economic harm to property caused by the violation;
(3)  the history of previous violations;
(4)  the amount necessary to deter a future violation;
(5)  efforts to correct the violation; and
(6)  any other matter that justice may require.
(c)  The enforcement of the penalty may be stayed during the time the order is under judicial review if the person pays the penalty to the clerk of the court or files a supersedeas bond with the court in the amount of the penalty.  A person who cannot afford to pay the penalty or file the bond may stay the enforcement by filing an affidavit in the manner required by the Texas Rules of Civil Procedure for a party who cannot afford to file security for costs, subject to the right of the commissioner to contest the affidavit as provided by those rules.
(d)  The attorney general may sue to collect the penalty.
(e)  An appeal of an administrative penalty under this section is considered to be a contested case under Chapter 2001, Government Code.
Added by Acts 1999, 76th Leg., ch. 1254, Sec. 2, eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 337, Sec. 11, eff. Sept. 1, 2001;  Acts 2001, 77th Leg., ch. 407, Sec. 4, eff. Sept. 1, 2001.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1317 (H.B. 2774), Sec. 16, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 655 (S.B. 1124), Sec. 31, eff. September 1, 2011.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 156 - Residential Mortgage Loan Companies › Subchapter D. License Revocation and Suspension and Other Actions Against License Holder › Section 156.304. Fee Assessment and Disclosure

Sec. 156.304.  FEE ASSESSMENT AND DISCLOSURE.  (a)  Before the completion of all services to be performed, a residential mortgage loan originator sponsored by and conducting business for a licensed or registered residential mortgage loan company under this chapter may charge and receive, unless prohibited by law, the following fees for services in assisting a mortgage applicant to obtain a residential mortgage loan:
(1)  a fee to obtain a credit report;
(2)  a fee for the appraisal of the real estate;
(3)  a fee for processing a residential mortgage loan application;
(4)  a fee for taking a residential mortgage loan application;
(5)  a fee for automated underwriting;
(6)  a fee for a courier service;
(7)  a fee to issue a loan commitment; or
(8)  subject to Subsection (b), a fee for locking in an interest rate.
(b)  A residential mortgage loan originator may not charge or receive a fee for locking in an interest rate unless there is a written agreement signed by the mortgage applicant and residential mortgage loan originator that contains a statement of whether the fee to lock in the interest rate is refundable and, if so, the terms and conditions necessary to obtain the refund.
Added by Acts 1999, 76th Leg., ch. 1254, Sec. 2, eff. Sept. 1, 1999.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 655 (S.B. 1124), Sec. 33, eff. September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 160 (S.B. 1004), Sec. 35, eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 156 - Residential Mortgage Loan Companies › Subchapter D. License Revocation and Suspension and Other Actions Against License Holder › Section 156.305. Restitution

Sec. 156.305.  RESTITUTION.  The commissioner may order a person to make restitution for any amount received by that person in violation of this chapter.  A residential mortgage loan company may be required to make restitution for any amount received by a sponsored residential mortgage loan originator in violation of Chapter 157.
Added by Acts 2005, 79th Leg., Ch. 1018 (H.B. 955), Sec. 6.16, eff. September 1, 2005.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 655 (S.B. 1124), Sec. 34, eff. September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 160 (S.B. 1004), Sec. 36, eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 156 - Residential Mortgage Loan Companies › Subchapter E. Hearings; Judicial Review; Civil Actions; Unlicensed Activity › Section 156.401. Hearings and Judicial Review

Sec. 156.401.  HEARINGS AND JUDICIAL REVIEW.  (a)  The commissioner may employ an enforcement staff to investigate and prosecute complaints made against persons licensed under this chapter.  The commissioner may employ a hearings officer to conduct hearings under this section.  The commissioner may collect and deposit any court costs collected pursuant to a final order.
(b)  If the commissioner proposes to suspend or revoke a license issued under this chapter or if the commissioner refuses to issue or renew a license to an applicant for a license or person requesting a renewal of a license under this chapter, the applicant or license holder is entitled to a hearing before the commissioner or a hearings officer who shall make a proposal for 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.
(c)  The commissioner or hearings officer may issue subpoenas for the attendance of witnesses and the production of records or documents.  Process issued by the commissioner or hearings officer may extend to all parts of the state and may be served by any person designated by the commissioner or hearings officer.
(d)  A person aggrieved by a ruling, order, or decision of the commissioner has the right 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.
(e)  The commissioner may, in the commissioner's discretion, rescind or vacate any previously issued revocation order.
Added by Acts 1999, 76th Leg., ch. 1254, Sec. 2, eff. Sept. 1, 1999.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1317 (H.B. 2774), Sec. 18, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 655 (S.B. 1124), Sec. 35, eff. September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 160 (S.B. 1004), Sec. 37, eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 156 - Residential Mortgage Loan Companies › Subchapter E. Hearings; Judicial Review; Civil Actions; Unlicensed Activity › Section 156.402. Civil Actions and Injunctive Relief

Sec. 156.402.  CIVIL ACTIONS AND INJUNCTIVE RELIEF.  (a)  A mortgage applicant injured by a violation of this chapter may bring an action for recovery of actual monetary damages and reasonable attorney's fees and court costs.
(b)  The commissioner, the attorney general, or a mortgage applicant may bring an action to enjoin a violation of this chapter.
(c)  A remedy provided by this section is in addition to any other remedy provided by law.
Added by Acts 1999, 76th Leg., ch. 1254, Sec. 2, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 156 - Residential Mortgage Loan Companies › Subchapter E. Hearings; Judicial Review; Civil Actions; Unlicensed Activity › Section 156.403. Burden of Proof to Establish an Exemption

Sec. 156.403.  BURDEN OF PROOF TO ESTABLISH AN EXEMPTION.  The burden of proving an exemption in a proceeding or action brought under this chapter is on the person claiming the benefit of the exemption.
Added by Acts 1999, 76th Leg., ch. 1254, Sec. 2, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 156 - Residential Mortgage Loan Companies › Subchapter E. Hearings; Judicial Review; Civil Actions; Unlicensed Activity › Section 156.404. Reliance on Written Notices From Commissioner

Sec. 156.404.  RELIANCE ON WRITTEN NOTICES FROM COMMISSIONER.  A person does not violate this chapter with respect to an action taken or omission made in reliance on a written notice, written interpretation, or written report from the commissioner, unless a subsequent amendment to this chapter or a rule adopted under this chapter affects the commissioner's notice, interpretation, or report.
Added by Acts 1999, 76th Leg., ch. 1254, Sec. 2, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 156 - Residential Mortgage Loan Companies › Subchapter F. Recovery Fund › Section 156.502. Funding

Text of section as amended by Acts 2021, 87th Leg., R.S., Ch. 929 (H.B. 3617), Sec. 6
Sec. 156.502.  FUNDING.  (a)  On an application for an original license issued under Chapter 157, the applicant, in addition to paying the original application fee, shall pay a fee in the amount of $20.  The fee shall be deposited in the recovery fund.
(a-1)  All or any portion of the amount of a penalty that is collected by the commissioner under Sections 156.302, 156.303, 157.023, 157.024, 157.031, 158.105, and 180.202, as determined by the commissioner, may be deposited to the credit of the recovery fund at the end of each fiscal year.
Without reference to the amendment of this subsection, this subsection was repealed by Acts 2021, 87th Leg., R.S., Ch. 963 (S.B. 1900), Sec. 7(3), eff. September 1, 2021.
(b)  If the balance remaining in the recovery fund at the end of a calendar year is more than $3.5 million, the amount of money in excess of that amount shall be remitted by the commissioner to the comptroller for deposit in the mortgage grant fund established under Subchapter G.
Added by Acts 1999, 76th Leg., ch. 1254, Sec. 2, eff. Sept. 1, 1999.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1317 (H.B. 2774), Sec. 20, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 1317 (H.B. 2774), Sec. 21, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 1317 (H.B. 2774), Sec. 29, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 655 (S.B. 1124), Sec. 39, eff. September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 160 (S.B. 1004), Sec. 41, eff. September 1, 2013.
Acts 2021, 87th Leg., R.S., Ch. 929 (H.B. 3617), Sec. 6, eff. September 1, 2021.
Acts 2021, 87th Leg., R.S., Ch. 963 (S.B. 1900), Sec. 7(3), eff. September 1, 2021.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 156 - Residential Mortgage Loan Companies › Subchapter F. Recovery Fund › Section 156.503. Statute of Limitations

Sec. 156.503.  STATUTE OF LIMITATIONS.  (a)  An application for the recovery of actual damages from the recovery fund under Section 156.504 may not be filed after the fourth anniversary of the date of the alleged act or omission causing the actual damages or the date the act or omission should reasonably have been discovered.
(b)  This section does not apply to a subrogation claim brought by the commissioner for recovery of money paid out of the recovery fund.
Added by Acts 1999, 76th Leg., ch. 1254, Sec. 2, eff. Sept. 1, 1999.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1317 (H.B. 2774), Sec. 22, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 655 (S.B. 1124), Sec. 40, eff. September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 160 (S.B. 1004), Sec. 42, eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 156 - Residential Mortgage Loan Companies › Subchapter F. Recovery Fund › Section 156.505. Recovery Limits

Sec. 156.505.  RECOVERY LIMITS.  (a)  A person entitled to receive payment out of the recovery fund is entitled to receive reimbursement of actual, out-of-pocket damages as provided by this section.
(b)  A payment from the recovery fund may be made as provided by Section 156.504 and this section.  A payment for claims:
(1)  arising out of the same transaction, including interest, is limited in the aggregate to $25,000, regardless of the number of claimants; and
(2)  against a single person licensed as a residential mortgage loan originator under Chapter 157 arising out of separate transactions, including interest, is limited in the aggregate to $50,000 until the fund has been reimbursed for all amounts paid.
(c)  In the event there are concurrent claims under Subsections (b)(1) and (2) that exceed the amounts available under the recovery fund, the commissioner shall prorate recovery based on the amount of damage suffered by each claimant.
Added by Acts 1999, 76th Leg., ch. 1254, Sec. 2, eff. Sept. 1, 1999.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1317 (H.B. 2774), Sec. 24, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 655 (S.B. 1124), Sec. 42, eff. September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 160 (S.B. 1004), Sec. 44, eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 156 - Residential Mortgage Loan Companies › Subchapter F. Recovery Fund › Section 156.506. Revocation or Suspension of License for Payment From Recovery Fund

Sec. 156.506.  REVOCATION OR SUSPENSION OF LICENSE FOR PAYMENT FROM RECOVERY FUND.  (a)  The commissioner may revoke or suspend a license issued under Chapter 157 on proof that the commissioner has made a payment from the recovery fund of any amount toward satisfaction of a claim against a residential mortgage loan originator under Chapter 157.
(a-1)  The commissioner may seek to collect from a residential mortgage loan originator the amount paid from the recovery fund on behalf of the residential mortgage loan originator and any costs associated with investigating and processing the claim against the fund or with collection of reimbursement for payments from the recovery fund, plus interest at the current legal rate until the amount has been repaid in full.  Any amount, including interest, recovered by the commissioner shall be deposited to the credit of the fund.
(b)  The commissioner may probate an order revoking or suspending a license under this section.
(c)  A person on whose behalf payment was made from the recovery fund is not eligible to receive a new license or have a suspension lifted under this chapter or Chapter 157 until the person has repaid in full, plus interest at the current legal rate, the amount paid from the fund on the person's behalf and any costs associated with investigating and processing the claim against the fund or with collection of reimbursement for payments from the fund.
(d)  This section does not limit the authority of the commissioner to take disciplinary action against a residential mortgage loan originator for a violation of Chapter 157 or the rules adopted by the finance commission under that chapter.  The repayment in full to the recovery fund of all obligations of a residential mortgage loan originator does not nullify or modify the effect of any other disciplinary proceeding brought under Chapter 157.
Added by Acts 1999, 76th Leg., ch. 1254, Sec. 2, eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 867, Sec. 93, eff. Sept. 1, 2001.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1317 (H.B. 2774), Sec. 25, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 655 (S.B. 1124), Sec. 43, eff. September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 160 (S.B. 1004), Sec. 45, eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 156 - Residential Mortgage Loan Companies › Subchapter F. Recovery Fund › Section 156.507. Subrogation

Sec. 156.507.  SUBROGATION.  When the commissioner has paid an applicant an amount from the recovery fund under Section 156.504, the commissioner is subrogated to all of the rights of the applicant to the extent of the amount paid.  The applicant shall assign all of the applicant's right, title, and interest in any subsequent judgment against the license holder, up to the amount paid by the commissioner.  Any amount, including interest, recovered by the commissioner on the assignment shall be deposited to the credit of the fund.
Added by Acts 1999, 76th Leg., ch. 1254, Sec. 2, eff. Sept. 1, 1999.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1317 (H.B. 2774), Sec. 26, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 655 (S.B. 1124), Sec. 44, eff. September 1, 2011.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 156 - Residential Mortgage Loan Companies › Subchapter F. Recovery Fund › Section 156.508. Failure to Comply With Subchapter or Rule Adopted by the Finance Commission

Sec. 156.508.  FAILURE TO COMPLY WITH SUBCHAPTER OR RULE ADOPTED BY THE FINANCE COMMISSION.  The failure of an applicant under Section 156.504 to comply with a provision of this subchapter relating to the recovery fund or with a rule adopted by the finance commission relating to the fund constitutes a waiver of any rights under this subchapter.
Added by Acts 1999, 76th Leg., ch. 1254, Sec. 2, eff. Sept. 1, 1999.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1317 (H.B. 2774), Sec. 27, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 655 (S.B. 1124), Sec. 44, eff. September 1, 2011.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 156 - Residential Mortgage Loan Companies › Subchapter G. Mortgage Grant Fund › Section 156.551. Mortgage Grant Fund

Sec. 156.551.  MORTGAGE GRANT FUND.  (a)  The commissioner shall establish, administer, and maintain a mortgage grant fund as provided by this subchapter. The amounts received by the commissioner for deposit in the fund shall be held by the commissioner in trust for carrying out the purposes of the fund.
(b)  Subject to Subsection (c), all or any portion of the amount of a penalty that is collected by the commissioner under Sections 156.302, 156.303, 157.023, 157.024, 157.031, 158.105, and 180.202, as determined by the commissioner, may be deposited to the credit of the mortgage grant fund at the end of each fiscal year.
(c)  The balance of the mortgage grant fund may not at any time exceed $300,000.
Added by Acts 2021, 87th Leg., R.S., Ch. 929 (H.B. 3617), Sec. 7, eff. September 1, 2021.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 156 - Residential Mortgage Loan Companies › Subchapter G. Mortgage Grant Fund › Section 156.552. Funding

Sec. 156.552.  FUNDING.  The mortgage grant fund consists of:
(1)  penalties collected by the commissioner and deposited to the credit of the fund in accordance with Section 156.551(b); and
(2)  excess amounts transferred from the recovery fund under Section 156.502(b).
Added by Acts 2021, 87th Leg., R.S., Ch. 929 (H.B. 3617), Sec. 7, eff. September 1, 2021.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 156 - Residential Mortgage Loan Companies › Subchapter G. Mortgage Grant Fund › Section 156.553. Management of Fund

Sec. 156.553.  MANAGEMENT OF FUND.  (a)  The commissioner, as manager of the mortgage grant fund, shall:
(1)  subject to Subsection (b), invest and reinvest the assets of the fund;
(2)  make disbursements from the fund in accordance with Section 156.554;
(3)  advise the finance commission regarding the fund;
(4)  maintain books and records for the fund as required by the finance commission; and
(5)  appear at hearings or judicial proceedings related to the fund.
(b)  Amounts in the mortgage grant fund may be invested and reinvested in accordance with Chapter 2256, Government Code, and under the prudent person standard described in Section 11b, Article VII, Texas Constitution.
Added by Acts 2021, 87th Leg., R.S., Ch. 929 (H.B. 3617), Sec. 7, eff. September 1, 2021.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 156 - Residential Mortgage Loan Companies › Subchapter G. Mortgage Grant Fund › Section 156.554. Disbursement From Fund

Sec. 156.554.  DISBURSEMENT FROM FUND.  (a)  The commissioner shall approve each disbursement from the mortgage grant fund, which must be for a purpose authorized by Subsection (b).
(b)  The commissioner:
(1)  may provide grants in an aggregate amount of not more than $100,000 each year to an auxiliary mortgage loan activity company or another nonprofit organization for the purposes of:
(A)  providing to consumers financial education relating to mortgage loans; and
(B)  providing to other nonprofit organizations training in order for those organizations to provide to consumers financial education relating to mortgage loans;
(2)  shall make disbursements from the fund to pay claims made under Section 156.555 that meet the requirements for payment under that section; and
(3)  may make disbursements from the fund to provide support for statewide financial education, activities, and programs specifically related to mortgage loans for consumers, including activities and programs described by Section 14.113(c).
Added by Acts 2021, 87th Leg., R.S., Ch. 929 (H.B. 3617), Sec. 7, eff. September 1, 2021.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 159 (S.B. 1371), Sec. 3, eff. September 1, 2023.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 156 - Residential Mortgage Loan Companies › Subchapter G. Mortgage Grant Fund › Section 156.555. Payment of Claims for Fraudulent Unlicensed Activity

Sec. 156.555.  PAYMENT OF CLAIMS FOR FRAUDULENT UNLICENSED ACTIVITY.  (a)  A residential mortgage loan applicant may make a claim on and receive payment from the mortgage grant fund for the recovery of the applicant's actual, out-of-pocket damages incurred because of fraud committed by an individual who acted as a residential mortgage loan originator but who did not hold the required license issued under Chapter 157 at the time the individual committed the fraudulent act.
(b)  The eligibility and procedural requirements for a claim made under Section 156.504 and the statute of limitations under Section 156.503 apply to a residential mortgage loan applicant who makes a claim under this section.
(c)  Payments made from the mortgage grant fund to a residential mortgage loan applicant under this section are subject to the limits provided by Section 156.505.
Added by Acts 2021, 87th Leg., R.S., Ch. 929 (H.B. 3617), Sec. 7, eff. September 1, 2021.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 156 - Residential Mortgage Loan Companies › Subchapter G. Mortgage Grant Fund › Section 156.556. Rules

Sec. 156.556.  RULES.  The finance commission shall adopt rules to administer this subchapter, including rules governing implementation of Section 156.554 that:
(1)  ensure a grant awarded under that section is used for a public purpose described by that section; and
(2)  provide a means of recovering money awarded that is not used in compliance with that section.
Added by Acts 2021, 87th Leg., R.S., Ch. 929 (H.B. 3617), Sec. 7, eff. September 1, 2021.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 157 - Mortgage Bankers and Residential Mortgage Loan Originators › Subchapter A. General Provisions › Section 157.001. Short Title

Sec. 157.001.  SHORT TITLE.  This chapter may be cited as the Mortgage Banker Registration and Residential Mortgage Loan Originator License Act.
Added by Acts 2003, 78th Leg., ch. 1301, Sec. 1, eff. Jan. 1, 2004.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1147 (H.B. 2779), Sec. 1, eff. April 1, 2010.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 157 - Mortgage Bankers and Residential Mortgage Loan Originators › Subchapter A. General Provisions › Section 157.002. Definitions

Sec. 157.002.  DEFINITIONS.  In this chapter:
(1)  "Commissioner" means the savings and mortgage lending commissioner.
(2)  "Disciplinary action" means any order by the commissioner that requires one or more of the following:
(A)  suspension or revocation of a residential mortgage loan originator license under this chapter;
(B)  probation of a suspension or revocation of a residential mortgage loan originator license under this chapter on terms and conditions that the commissioner determines appropriate;
(C)  a reprimand of a person with a residential mortgage loan originator license under this chapter; or
(D)  an administrative penalty imposed on a person holding a residential mortgage loan originator license under this chapter.
(3)  "Finance commission" means the Finance Commission of Texas.
(3-a)  "Inspection" includes examination.
(4)  "Mortgage banker" means a person who:
(A)  accepts an application for a residential mortgage loan, makes a residential mortgage loan, or services residential mortgage loans; 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.
(4-a)  "Nationwide Mortgage Licensing System and Registry" has the meaning assigned by Section 180.002.
(4-b)  "Recovery fund" means the fund established and maintained by the commissioner under Subchapter F, Chapter 156, and Section 13.016.
(5)  "Residential mortgage loan" has the meaning assigned by Section 180.002.
(5-a)  "Residential mortgage loan company" has the meaning assigned by Section 156.002.
(6)  "Residential mortgage loan originator" has the meaning assigned by Section 180.002.
Added by Acts 2003, 78th Leg., ch. 1301, Sec. 1, eff. Jan. 1, 2004.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 6.053, eff. September 1, 2007.
Acts 2009, 81st Leg., R.S., Ch. 1147 (H.B. 2779), Sec. 2, eff. April 1, 2010.
Acts 2011, 82nd Leg., R.S., Ch. 588 (S.B. 17), Sec. 2, eff. September 1, 2011.
Acts 2011, 82nd Leg., R.S., Ch. 655 (S.B. 1124), Sec. 45, eff. September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 160 (S.B. 1004), Sec. 48, eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 157 - Mortgage Bankers and Residential Mortgage Loan Originators › Subchapter B. Administrative Provisions › Section 157.0021. Disclosure Statement

Sec. 157.0021.  DISCLOSURE STATEMENT.  (a)  A mortgage banker that is a residential mortgage loan originator shall include a notice to a residential mortgage loan applicant with an application for a residential mortgage loan.  The finance commission by rule shall adopt a standard disclosure form to be used by the mortgage banker.  The form must:
(1)  include the name, address, and toll-free telephone number for the Department of Savings and Mortgage Lending;
(2)  contain information on how to file a complaint or recovery fund claim; and
(3)  prescribe a method for proof of delivery to the consumer.
(b)  A mortgage banker that indicates in its registration that it acts as a residential mortgage loan servicer shall provide to the borrower of each residential mortgage loan it services the following notice not later than the 30th day after the date the mortgage banker 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 2003, 78th Leg., ch. 1301, Sec. 1, eff. Jan. 1, 2004.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 6.054, eff. September 1, 2007.
Acts 2009, 81st Leg., R.S., Ch. 1147 (H.B. 2779), Sec. 5, eff. April 1, 2010.
Acts 2011, 82nd Leg., R.S., Ch. 588 (S.B. 17), Sec. 4, eff. September 1, 2011.
Acts 2011, 82nd Leg., R.S., Ch. 655 (S.B. 1124), Sec. 50, eff. September 1, 2011.
Transferred and redesignated from Finance Code, Section 157.007 by Acts 2013, 83rd Leg., R.S., Ch. 160 (S.B. 1004), Sec. 54, eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 157 - Mortgage Bankers and Residential Mortgage Loan Originators › Subchapter B. Administrative Provisions › Section 157.0022. Complaints

Sec. 157.0022.  COMPLAINTS.  (a)  If the Department of Savings and Mortgage Lending 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, Sec. 1, eff. Jan. 1, 2004.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 6.055, eff. September 1, 2007.
Transferred and redesignated from Finance Code, Section 157.008 by Acts 2013, 83rd Leg., R.S., Ch. 160 (S.B. 1004), Sec. 54, eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 157 - Mortgage Bankers and Residential Mortgage Loan Originators › Subchapter B. Administrative Provisions › Section 157.0023. Rulemaking Authority

Sec. 157.0023.  RULEMAKING AUTHORITY.  (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.
(c)  The finance commission may adopt rules under this chapter as required to carry out the intentions of the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (Pub. L. No. 110-289).
Added by Acts 2003, 78th Leg., ch. 1301, Sec. 1, eff. Jan. 1, 2004.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1147 (H.B. 2779), Sec. 7, eff. April 1, 2010.
Transferred and redesignated from Finance Code, Section 157.011 by Acts 2013, 83rd Leg., R.S., Ch. 160 (S.B. 1004), Sec. 56, eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 157 - Mortgage Bankers and Residential Mortgage Loan Originators › Subchapter B. Administrative Provisions › Section 157.0024. Mortgage Industry Advisory Committee

Sec. 157.0024.  MORTGAGE INDUSTRY ADVISORY COMMITTEE.  The mortgage industry advisory committee shall advise and assist the commissioner with respect to this chapter as provided by Section 156.104.
Added by Acts 2013, 83rd Leg., R.S., Ch. 160 (S.B. 1004), Sec. 49, eff. September 1, 2013.