The Texas Finance Commission, on behalf of the Department of Savings and Mortgage Lending, published amendments to the Texas Administrative Code rules at Title 7, Part 4, Chapters 80 and 81, in the January 1, 2021 issue of the Texas Register (46 TexReg 151-160). The rules are effective January 3, 2021.
Chapter 80 implements Finance Code Chapter 156, Residential Mortgage Loan Companies. The adopted rules cover Subchapter A §80.1 and §80.2; Subchapter C, §§80.200, 80.202 - 80.206; and Subchapter D, §80.300 and §80.301. Notable changes have been adopted in Definitions, subsection §80.2, which adds new definitions for the terms “originator,” “application,” and “compensation.” The section also adds two new definitions for “dwelling” and “residential real estate” while removing “one-to-four family residential real estate.” The term “criminal offense” has been removed as unnecessary while the new term “social media site” has been added.
There are no changes to the Texas Mortgage Company Disclosure required under §80.200(a) but a mortgage company must now keep a record of the timely delivery of the notice to the mortgage applicant. There is also no change to the disclosure required under §80.200(b) but the posting requirements now include websites and social media sites for the mortgage loan company instead of a physical address. The text of §80.200(c) has been changed to require a mortgage company to provide its name and NMLS identification number on all correspondence to a mortgage applicant. If correspondence is from a sponsored originator, the name and NMLS identification number of the sponsored originator must be included.
Chapter 81 implements Finance Code Chapter 156, Mortgage Bankers and Residential Mortgage Loan Originators. The adopted rules cover Subchapter A, §§81.1 - 81.3; Subchapter C, §§81.200, 81.202 - 81.206; and Subchapter D, §81.300 and §81.301. Notable changes include the adopted rules of subsection §81.2 (Definitions) which add new definitions for “application,” “compensation,” “dwelling,” and other terms. The updates are similar to the terms adopted in subsection §80.2.
The amendments adopted in subsection §81.200(a)-(c) are substantially the same as those made in §80.200. There are no changes to the Texas Mortgage Banker Disclosure required under §81.200(a) but a mortgage company and a sponsored originator must now maintain a record of the timely delivery of the notice to the mortgage applicant. Subsection §81.200(b) now requires an originator sponsored by a mortgage company to provide the notice in Section §80.200(a) to mortgage loan applicants. The notice required by subsection §81.200(c) no longer needs to be posted at the mortgage banker’s physical address but must be accessible by a mortgage applicant on websites and social media sites. A new subsection §81.200(e) requires all correspondence from an originator to a mortgage applicant to disclose NMLS identification information.
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