Texas Register, Volume 38, Number 27, Pages 4243-4444, July 5, 2013 Page: 4,260
4243-4444 p. ; 28 cm.View a full description of this periodical.
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The Finance Commission of Texas (the Commission) proposes
amendments to 7 TAC Chapter 81, 81.1, concerning Scope;
81.2, concerning Definitions; 81.100, concerning Licensing -
General; 81.105, concerning Fees; 81.200, concerning Re-
quired Disclosures; 81.202, concerning Prohibition on False,
Misleading, or Deceptive Practices and Improper Dealings;
81.203, concerning Advertising; and 81.205, concerning
Mortgage Call Reports.
In general, the purpose of the proposed amendments is to imple-
ment statutory changes made by the 83rd Legislative Session.
Douglas B. Foster, Commissioner, Texas Department of Savings
and Mortgage Lending, has determined that for the first five-year
period the rules are in effect, there will be no fiscal implications
for state government or for local government as a result of en-
forcing or administering these rules.
Commissioner Foster has also determined that for each year of
the first five years the rules are in effect, the public benefit antic-
ipated as a result of the proposed amendments will be clarifica-
tion and implementation of the statute. There will be no effect on
individuals required to comply with the rules as proposed. There
will be no adverse economic effect on small or micro businesses.
Comments on the proposed amendments may be submit-
ted in writing to Caroline C. Jones, General Counsel, Texas
Department of Savings and Mortgage Lending, 2601 North
Lamar, Suite 201, Austin, Texas 78705; or by email to sm-
linfo@sml.texas.gov within 30 days of this publication in the
Texas Register.
SUBCHAPTER A. GENERAL PROVISIONS
7 TAC 81.1, 81.2
The amendments are proposed under Finance Code, 157.011,
which grants rulemaking authority to the Finance Commission of
Texas.
The statutory provisions affected by the proposed amendments
are contained in Finance Code, Chapters 157 and 180.
81.1. Scope.
This chapter governs the licensing, registration, and conduct of resi-
dential mortgage loan originators and mortgage bankers under Finance
Code, Chapter 157 and Chapter 180, [the Texas Secure and Fair En-
foreement for Motgage Licensing Act of 2009 ("SAFE Act")1] except
for individuals engaged in authorized activity subject to the authority
of a regulatory official under Finance Code, 180.251(c). The terms
"licensed" and "registered" may be used interchangeably.
81.2. Definitions.
As used in this chapter, the following terms have the meanings indi-
cated:
(1) "Commissioner's designee" means an employee of the
department performing his or her assigned duties or such other person
as the Commissioner may designate in writing. A Commissioner's de-
signee is deemed to be the Commissioner's authorized "personnel or
representative" as such term is used in Finance Code, Chapter 157.
(2) "Criminal Offense" means any violation of any state or
federal criminal statute which:
(A) involves theft, misappropriation, or misapplication,
of monies or goods in any amount;
(B) involves the falsification of records, perjury, or
other similar criminal offenses indicating dishonesty;(C) involves the solicitation of, the giving of, or the tak-
ing of bribes, kickbacks, or other illegal compensation;
(D) involves deceiving the public by means of swin-
dling, false advertising or the like;
(E) involves acts of moral turpitude and violation of du-
ties owed to the public including, but not limited to, the unlawful manu-
facture, distribution, or trafficking in a controlled substance, dangerous
drug, or marijuana;
(F) involves acts of violence or use of a deadly weapon;
(G) when considered with other violations committed
over a period of time appears to establish a pattern of disregard for, a
lack of respect for, or apparent inability to follow, the criminal law; or
(H) involves any other crime which the Commissioner
determines has a reasonable relationship to whether a person is fit to
serve as an originator in a manner consistent with the purposes of Fi-
nance Code, Chapter 157 and the best interest of the State of Texas and
its residents.
(3) "Department" means the Texas Department of Savings
and Mortgage Lending.
(4) "Mortgage banker" shall have the same meaning as that
provided in Finance Code, 157.002.
(-5) Ori.ginato" .means for purposes of this chapter
a Residential Mortgage Lean Originator as that term is defined in
Finhance ode [0.0 0 2.]
(5) [()] "Physical Office" means an actual office where the
business of mortgage lending and/or the business of taking or solicit-
ing residential mortgage loan applications are conducted. It must have
a street address. A post office box or other similar designation will
not suffice. It must be accessible to the general public as a place of
business and must hold itself open on a regular basis during posted
hours. The hours of business must be posted in a manner to give ef-
fective notice to walk-up traffic as to the hours of opening and closing.
Normally this will require posting of the hours on an exterior door or
window of the office. In those instances where the physical office is in
a shared office suite or building, the hours may be posted in a common
lobby or reception area. During the hours in which the physical office
is open, at least one staff member must be present to assist customers.
The physical office of an originator need not be the location at which
such originator's required records are maintained, but the location at
which such required records are maintained must be accessible to the
Commissioner or the Commissioner's designee for examination during
normal business hours.
(6) [(7)] "Residential mortgage loan" shall have the same
meaning as that provided in Finance Code, 180.002 and includes new
loans and renewals, extensions, modifications, and rearrangements of
such loans. The term does not include a loan which is secured by a
structure that is suitable for occupancy as a one-to-four family resi-
dence, but is used for a commercial purpose such as a professional of-
fice, beauty salon, or other non-residential use, and is not used as a
residence.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal author-
ity to adopt.
Filed with the Office of the Secretary of State on June 24, 2013.
TRD-20130263438 TexReg 4260 July 5, 2013 Texas Register
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Texas. Secretary of State. Texas Register, Volume 38, Number 27, Pages 4243-4444, July 5, 2013, periodical, July 5, 2013; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth326801/m1/18/: accessed April 26, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.