Texas Senate Bill SB1916

Texas 2017 - 85th Regular

Caption

Relating to savings and loan associations, savings banks, residential mortgage loan originators and servicers, and other persons or entities under the regulatory jurisdiction of the Department of Savings and Mortgage Lending and the savings and mortgage lending commissioner; creating an offense.

Impact

The bill has significant implications for state laws regarding financial institutions. By laying down specific requirements for capital stock, operational guidelines, and reporting mechanisms, SB1916 strengthens the oversight responsibilities of the Department of Savings and Mortgage Lending. It empowers the commissioner to intervene in instances of unsafe or unsound practices within these institutions, thus promoting better consumer protection and stability in the financial sector. Moreover, the provisions regarding the creation of offenses for unregistered activities underscore the seriousness with which the legislature approaches regulatory compliance.

Summary

SB1916 relates to the regulation and incorporation of savings and loan associations, savings banks, and residential mortgage loan originators and servicers. This bill aims to enhance the regulatory framework surrounding these financial entities by amending existing sections of the Finance Code. It establishes detailed requirements for the formation and operation of savings banks, including capital requirements, governance regulations, and the role of the commissioner in overseeing these institutions. The intent of the bill is to ensure that financial entities operate within a clearly defined and effectively monitored regulatory environment.

Contention

Notable points of contention surrounding SB1916 may arise from the increased regulatory oversight it promotes compared to previous statutes. While proponents argue that this bill will protect consumers and ensure the integrity of financial institutions, there may be concerns regarding the additional compliance burdens that could be placed on smaller banks and mortgage servicing entities. Critics may point out that stringent regulations could hinder the ability of these institutions to operate flexibly, particularly in competitive markets where quick adaptability is essential. Overall, the balance between regulatory rigor and operational flexibility is likely to be a focal point of debate as the bill progresses through the legislative process.