7 TAC §80.9
The Finance Commission of Texas (the "Finance Commission")
proposes to amend 7 TAC §80.9 through the proposal of a new subsection §80.9(c)
concerning the filing of consumer complaints with the Texas Savings and Loan
Department (the "department").
The new Subsection 80.9(c) will implement the requirements of
Finance Code
, §11.307, pertaining to the filing of consumer complaints
with the department, as enacted by the 77th Legislative through House Bill
1763.
Proposed §80.9(c) will specify the manner in which Mortgage Brokers
and Loan Officers provide consumers with information on how to file complaints
with the department. The proposed subsection will also require that the information
on how to file complaints be included with each privacy notice a Mortgage
Broker or Loan Officer is required by law to provide to consumers.
James L. Pledger, Commissioner, Texas Savings and Loan Department, has
determined that, for each year of the first five years that the subsection
is in effect, there will be no fiscal implication for state or local government
as a result of enforcing or administering the subsection as adopted.
Commissioner Pledger also has determined that, for each of the first five
years the subsection as adopted is in effect, the public benefit anticipated
as a result of the adoption of this subsection will be the provision of information
to the consumers of Mortgage Brokers and Loan Officers on how to file complaints
with the department. There will be minimal costs incurred by a person required
to comply with this subsection and there will be no deleterious effect on
small businesses.
Comments on proposed §80.9(c) may be submitted in writing to James
L. Pledger, Commissioner, Texas Savings and Loan Department, 2601 North Lamar
Boulevard, Suite 201, Austin, Texas, 78705-4294, or e-mailed to: TSLD@tsld.state.tx.us.
Subsection 80.9(c) is proposed under the authority of
Finance Code
, §11.307, which requires the Finance Commission to
adopt rules specifying the manner in which Mortgage Brokers and Loan Officers
provide consumers with information on how to file complaints with the department.
The proposed amendment implements
Finance Code
, §11.307.
§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
paragraph (2) (A) of this subsection or by providing the disclosure specified
in Section 80.9(c).
(D)
The following measures are deemed to be appropriate steps
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 paragraph (2) (A) of this subsection, 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 which the consumer must view
whenever the site is accessed; or
(iii)
Providing a completed disclosure in the form required
by subsection (a) hereof.
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 February 25, 2002.
TRD-200201166
Timothy K. Irvine
General Counsel
Texas Savings and Loan Department
Earliest possible date of adoption: April 14, 2002
For further information, please call: (512) 475-1350