Relating to the regulation of residential mortgage loan companies, including the registration of mortgage lot lender companies; authorizing a fee.
Impact
The enactment of HB 2656 will notably amend existing Finance Code regulations, specifically Section 156, by adding requirements and qualifications for mortgage lot lender companies. It mandates that these companies undergo a registration process through the Nationwide Mortgage Licensing System and Registry, ensuring they meet specified standards. This change will enhance the oversight of these financial entities, aiming to prevent potential malpractices within the residential mortgage sector, particularly in transactions involving properties that are not yet developed.
Summary
House Bill 2656 focuses on enhancing the regulation of residential mortgage loan companies in Texas by introducing specific provisions for the registration of mortgage lot lender companies. This legislation defines a mortgage lot lender company as entities engaging in the mortgage loan origination on residential properties without constructed dwellings. With this bill, the state aims to establish clearer guidelines and a standard process for the registration of these companies while authorizing a fee for the registration process itself. The intent is to ensure that all companies in this space comply with set parameters to protect consumers and maintain the integrity of the mortgage lending system.
Sentiment
The overall sentiment surrounding HB 2656 appears to be cautiously optimistic. Supporters of the bill, primarily from regulatory bodies and consumer protection advocates, consider it a positive move towards improving accountability and transparency in the mortgage lending process. However, there may be some concerns from smaller lenders about the potential financial burden introduced by the registration fees and compliance requirements, which could affect their operations.
Contention
Notable points of contention could arise primarily from smaller financial institutions and community lenders who fear that the additional regulatory requirements may inhibit their ability to compete with larger entities already entrenched in the mortgage market. The bill also raises discussions about the balance between regulation and operational flexibility for mortgage lenders. Ensuring that sufficient protections are in place without unnecessarily constraining market entry and competition will be a key point of debate as the bill progresses.
Relating to state contracts with Chinese companies and investments in Chinese companies and certain companies doing business with China; authorizing a civil penalty.
Relating to the regulation of money services businesses; creating a criminal offense; creating administrative penalties; authorizing the imposition of a fee.
Relating to an individual's genetic data, including the use of that data by certain genetic testing companies for commercial purposes and the individual's property right in DNA; authorizing a civil penalty.