TITLE 7. BANKING AND SECURITIES

Part 6. CREDIT UNION DEPARTMENT

Chapter 91. CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS

Subchapter G. LENDING POWERS

7 TAC §91.704

The Credit Union Commission adopts amendments to §91.704, concerning real estate lending, without changes to the proposed text as published in the November 2, 2007, issue of the Texas Register (32 TexReg 7811). The amendments incorporate the mortgage fraud notice requirements set out in House Bill 716, passed by the 80th Legislature, add a definition of home loan, and correct two typographical errors.

The amendments to the rule clarify that credit unions must provide the mortgage fraud notice required by the recent amendment to Chapter 343 of the Finance Code, which requires lenders making home loans to notify borrowers of the penalties for making false or misleading statements to obtain a residential mortgage loan. The definition of home loan is identical to Finance Code §343.001(2).

The Commission received no comments with respect to this rule amendment. A public hearing on the amendments was held at the Department offices on January 18, 2008 at 9:00 a.m. No comments were received at that hearing.

The amendments are adopted under §15.402 of the Texas Finance Code, which authorizes the Commission to adopt reasonable rules for administering Title 2, Chapter 15 and Title 3, Subchapter D of the Texas Finance Code and under Texas Finance Code §124.001, which authorizes the Commission to adopt rules regarding loans to members.

The specific section affected by the amendments is Texas Finance Code, §124.001.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 11, 2008.

TRD-200800795

Harold E. Feeney

Commissioner

Credit Union Department

Effective date: March 2, 2008

Proposal publication date: November 2, 2007

For further information, please call: (512) 837-9236