Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 81 - MORTGAGE BANKERS AND RESIDENTIAL MORTGAGE LOAN ORIGINATORS › Subchapter C - DUTIES AND RESPONSIBILITIES › Section 81.204 - Books and Records

Current through Reg. 49, No. 28; July 12, 2024
(a) Maintenance
				  of Records, Generally. In order to ensure a mortgage banker or an originator
				  will have all records necessary to facilitate an inspection (including an
				  examination) of an originator, enable the Commissioner or the Commissioner's
				  designee to investigate complaints against a mortgage banker or an originator,
				  and otherwise ensure compliance with the requirements of Finance Code Chapters
				  157 and 180, and this chapter, a mortgage banker and an originator must
				  maintain records as prescribed by this section.
(1) Format. The records required by this
				  section may be maintained by using a physical, electronic, or digitally-imaged
				  recordkeeping system, or a combination thereof. The records must be accurate,
				  complete, current, legible, and readily accessible and sortable.
(2) Location. A mortgage banker must ensure
				  the records required by this section (or true and correct copies thereof) are
				  maintained at or are otherwise readily accessible from either the main office
				  of the mortgage banker or the location the mortgage banker has designated in
				  its MU1 filing under "Books and Records Information" in NMLS. An originator
				  must ensure the records required by this section (or true and correct copies
				  thereof) are maintained at or are otherwise readily accessible from the main
				  office of the mortgage banker or the mortgage company sponsoring the
				  originator, or the location the mortgage banker or mortgage company has
				  designated in its MU1 filing under "Books and Records Information" in NMLS.
				  (For purposes of this section "main office" has the meaning assigned by §
											RSA
				  81.206 of this title (relating to Office
				  Locations; Remote Work), with respect to a mortgage banker, and §
											RSA
				  80.206 of this title (relating to Office
				  Locations; Remote Work), with respect to a mortgage company.)
(3) Production of Records; Disciplinary
				  Action or Violation. All records required by this section must be maintained in
				  good order and produced for the Commissioner or the Commissioner's designee
				  upon request. Failure by an originator to produce records upon request after a
				  reasonable time for compliance may result in disciplinary action against the
				  originator, including, but not limited to, suspension or revocation of the
				  originator's license. Failure by a mortgage banker to produce records upon
				  request after a reasonable time for compliance in response to a complaint
				  investigation conducted by the Department may be treated as a failure by the
				  mortgage banker to provide evidence in violation of the requirements of Finance
				  Code §
											RSA
				  157.0022(b).
(4) Retention Period. All records required by
				  this section must be maintained for 3 years or such longer period as may be
				  required by other applicable law.
(5) Conflicting Law. If the requirements of
				  other applicable law governing recordkeeping by the mortgage banker or
				  originator differ from the requirements of this section, such other applicable
				  law prevails only to the extent this section conflicts with the requirements of
				  this section.
(6) Compliance by the
				  Mortgage Banker or Mortgage Company on Behalf of the Originator. An originator
				  fulfills the requirements of subsection (b) of this section if his or her
				  sponsoring mortgage banker or mortgage company maintains the required books and
				  records on behalf of the originator.