Texas Office of Consumer Credit Commissioner and the Texas Department of Savings and Mortgage Lending (5%)

Question 1

The authority to regulate mortgage professionals in Texas arises from the following laws found in the Finance Code:

Answer 1

 Residential Mortgage Loan Company and Residential Mortgage Loan Originator Licensing and Registration Act (RMLA), Chapter 156
 Mortgage Banker Registration Act (MBRA), Chapter 157
 Texas Secure and Fair Enforcement for Mortgage Licensing Act of 2009 (the Act), Chapter 180

Question 2

TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING supervises:

Answer 2

 Mortgage Banker Registration
 Mortgage Company License
 Financial Services Company Registration
 Credit Union Subsidiary Organization License
 Auxiliary Mortgage Loan Activity License
 Independent RMLO/Processor/Underwriter License
 Mortgage Banker Branch Registration
 Mortgage Company Branch License
 Credit Union Subsidiary Organization Branch License
 Banker Mortgage Residential Loan Originator License
 Company Residential Mortgage Loan Originator License
 Financial Services Exclusive Agent
 Credit Union Subsidiary Organization Residential Mortgage Loan Originator License
 Auxiliary Residential Mortgage Loan Originator License
 Contracted RMLO/Processor/Underwriter Residential Mortgage Loan Originator License

Question 3

TEXAS OFFICE OF CONSUMER CREDIT COMMISSIONER supervises the following:

Answer 3

 Exempt Company Registration
 Regulated Loan License
 Regulated Loan License (Branch)
 Residential Mortgage Loan Originator License

Question 4

The Texas Department of Savings and Mortgage Lending (SML) have two (2) key areas of regulatory responsibility:

Answer 4

1. Chartering, regulation and supervision of the state’s thrift industry
2. Licensing/registration and regulation of the state’s mortgage industry

Question 5

To administer and enforce the mortgage laws of Texas, the Commissioner is authorized to:

Answer 5

 Deny, suspend, revoke, condition, or decline to renew a license
 Impose discipline for a violation of the Act by:
o Ordering restitution
o Imposing an administrative penalty
o Issuing a cease-and-desist order
o Enjoining a violation of the mortgage laws and rules
 In consultation with the Finance Commissioner, adopt rules for:
o Conducting background checks, and
o The payment of fees for initial licensure and renewal
 Establish a relationship or contract with the NMLS to collect and maintain records and process fees related to licensed residential mortgage loan originators and others regulated by the Act (Fin. Code § 180.252)
 Utilize the NMLS as a channeling agent for exchanging information with the U.S. Department of Justice, any governmental agency, or any other source as directed by the regulatory official

Question 6

the Finance Commission is authorized to adopt rules necessary to:

Answer 6

 Ensure compliance with the Residential Mortgage Loan Company and Residential Mortgage Loan Originator Licensing and Registration Act
 Participate in and/or transition to the NMLS and carry out the intentions of the federal S.A.F.E. Act
 Administer the recovery fund
 Standardize the maintenance of books and records a licensee is required to keep, including the location at which the books and records must be kept
 Prohibit false, misleading, or deceptive practices by mortgage licensees. However, the rules may not restrict competitive bidding or advertising by restricting:
o The use of any medium for an advertisement
o The personal appearance or voice of a person in an advertisement
o The size or duration of an advertisement
o Advertisement under a trade name