Texas Senate Bill SB1918

Texas 2017 - 85th Regular

Caption

Relating to the issuance and enforcement of a subpoena during the course of an investigation of a residential mortgage loan servicer.

Impact

The proposed legislation would amend Chapter 158 of the Finance Code by adding a new section specifically targeted at improving the investigatory powers of the commissioner overseeing mortgage loan servicers. By allowing for the issuance of subpoenas that can be enforced through district courts, the bill aims to strengthen the investigative capabilities of the regulatory body, thereby potentially leading to greater accountability among mortgage servicers. Such a provision could deter non-compliance and foster a more compliant environment within the mortgage servicing sector.

Summary

Senate Bill 1918 seeks to augment the regulatory framework surrounding residential mortgage loan servicers by providing the commissioner with the authority to issue and enforce subpoenas during the course of an investigation. The bill explicitly addresses the process of subpoena issuance, allowing the commissioner to compel individuals to provide depositions or produce documents relevant to an investigation. This measure is aimed at enhancing oversight and transparency in the mortgage servicing industry, which has faced increasing scrutiny in recent years due to various allegations of malfeasance.

Contention

Given the nature of the bill, potential points of contention could arise regarding the balance of regulatory authority and the rights of individuals being compelled to provide testimony or documents. Critics may argue about the implications of the expanded powers of the commissioner, fearing it could lead to overreach or a chilling effect on the practices of legitimate mortgage servicers. Supporters, however, would likely emphasize the necessity of such measures to protect consumers and ensure ethical standards are maintained in the mortgage industry. Overall, the bill's stakeholders may have differing perspectives on the implications of enhanced enforcement mechanisms.