Finance Code
, Section 156.102(a), which authorizes
the Commissioner, subject to review and compliance with the directives of
the Finance Commission, to adopt and enforce rules necessary for the intent
of or to ensure compliance with the Act.
The section of the Act affected by the amendment is
Finance Code
, Section 156.303(a)(3).
§80.9.Required Disclosures.
(a)
At the time an application for a Mortgage Loan is made
to a Mortgage Broker or Loan Officer, the Mortgage Broker or Loan Officer
shall provide the Mortgage Applicant with a disclosure describing their relationship,
the duties of the Mortgage Broker or Loan Officer to the Mortgage Applicant,
and a description of how the Mortgage Broker or Loan Officer will be compensated
for his or her services. Such disclosures are to be made using forms promulgated
by the Commissioner. Such disclosures shall include a statement to the effect
that the Department oversees the enforcement of the Act (including conducting
investigations of any complaints) and provide a consumer toll free telephone
number for the Department.
(b)
Anytime a Mortgage Broker or Loan Officer charges or receives
from a Mortgage Applicant a fee for a service that is provided by a third
party and retains any portion of the fee so charged or received:
(1)
The portion retained by the Mortgage Broker or Loan Officer
and a description of the service actually rendered by the Mortgage Broker
or Loan Officer shall be disclosed to the Mortgage Applicant in writing and
(2)
The portion so retained by the Mortgage Broker or Loan
Officer shall not exceed the reasonable value of services actually rendered
by the Mortgage Broker or Loan Officer for the benefit of the Mortgage Applicant.
(3)
Any Mortgage Broker or Loan Officer retaining any portion
of any fee or fees charged by third parties, however denominated, shall maintain
appropriate documentation to substantiate the basis for the retention of such
monies, including the reasonable value of the services rendered for such fee
or fees.
(4)
Affiliated business arrangements, as provided for under
the Real Estate Settlement Procedures Act, and payments made pursuant thereto
shall be disclosed to Mortgage Applicants as provided for by the Real Estate
Settlement Procedures Act and the regulations implementing that act.
(c)
Consumer Complaint Procedure
(1)
Definitions
(A)
"Privacy notice" means any notice which a Mortgage Broker
or Loan Officer gives regarding a consumer's right to privacy, regardless
of whether it is required by a specific state or federal law or given voluntarily.
(B)
"Required notice" means a notice in a form set forth or
provided for in paragraph (2)(A) of this subsection.
(2)
Notice of how to file complaints
(A)
In order to let its consumers know how to file complaints,
Mortgage Brokers and Loan Officers must use the following notice: (Name of
Mortgage Broker or Loan Officer) is licensed under the laws of the State of
Texas and by state law is subject to regulatory oversight by the Texas Savings
and Loan Department. Any consumer wishing to file a complaint against (name
of Mortgage Broker or Loan Officer) should contact the Texas Savings and Loan
Department through one of the means indicated below: In Person or by U.S.
Mail: 2601 North Lamar Boulevard, Suite 201, Austin, Texas 78705-4294, Telephone
No.: (877) 276-5550, Fax No.: (512) 475-1360, E-mail: TSLD@tsld.state.tx.us
(B)
A required notice must be included in each privacy notice
that a Mortgage Broker or Loan Officer sends out.
(C)
Regardless of whether a Mortgage Broker or Loan Officer
is required by any state or federal law to give privacy notices, each Mortgage
Broker or Loan Officer must take appropriate steps to let its consumers know
how to file complaints by giving them the required notice in compliance with
subparagraph (A) of this paragraph or by providing the disclosure specified
in this subsection.
(D)
Any one of the following measures is deemed to be an appropriate
step to give the required notice:
(i)
In each registered office or branch office where a Mortgage
Broker or Loan Officer conducts business on a face-to-face basis, the required
notice, in the form specified in subparagraph (A) of this paragraph, must
be conspicuously posted. A notice is deemed to be conspicuously posted if
a customer with 20/20 vision can read it from the place where he or she would
typically conduct business or if it is included on a bulletin board, in plain
view, on which all required notices to the general public (such as equal housing
posters, licenses, etc.) are posted;
(ii)
If a Mortgage Broker or Loan Officer maintains a web site,
the required notice must be included in a screen prominently displayed; or
(iii)
Providing a completed mortgage broker disclosure in the
form required by subsection (a) of this section executed at application.
(d)
In making disclosures to consumers pursuant
to the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending
Act,
(1)
The dollar amount of all fees to be paid by a consumer
to a mortgage broker or loan officer or their company shall be separately
identified as to be paid to the mortgage broker or loan officer on the Good
Faith Estimate ("GFE") issued in compliance with RESPA; and
(2)
The mortgage broker or loan officer shall provide a revised
GFE and Truth in Lending Statement ("Redisclosures") to the borrower in the
event that any change in the loan transaction increases the Annual Percentage
Rate (APR) by more than one-eighth of one percent above the APR initially
disclosed to the consumer. Such Redisclosures must be made within three business
days of the change in the loan transaction increasing the APR but in no event
later than five calendar days prior to the day of closing.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of
the Secretary of State on April 14, 2003.
TRD-200302446
Michael Chisum
General Counsel
Texas Savings and Loan Department
Proposed date of adoption: July 1, 2003
For further information, please call: (512) 475-1350