Texas House Bill HB4309

Texas 2021 - 87th Regular

Caption

Relating to the regulatory authority of the savings and mortgage lending commissioner; authorizing fees.

Impact

The implications of HB 4309 on state laws are significant, as it modifies the Finance Code in relation to the examination of financial entities. The bill empowers the commissioner to regulate and examine the activities of entities that state savings banks may contract with, thus expanding oversight beyond just the banks themselves. Additionally, the bill establishes enforcement actions for non-compliance, heightening accountability among third-party service providers and reinforcing the integrity of the savings banking system.

Summary

House Bill 4309 focuses on enhancing the regulatory authority of the savings and mortgage lending commissioner in Texas. This bill includes provisions that allow the commissioner to regulate and examine activities related to state savings bank affiliates and third-party service providers. A notable aspect of this legislation is the ability of the commissioner to collect fees from examined entities to cover the costs associated with these examinations. By implementing these fees, the bill aims to ensure that the regulatory process is adequately funded.

Contention

While the bill presents a detailed framework for regulatory processes, points of contention may arise regarding the fees imposed on third-party service providers and their potential impact on operational costs. Some stakeholders may argue that these fees could lead to increased costs for state savings banks, which may then be passed on to consumers. Furthermore, the expanded regulatory powers could spark debates on the balance between regulatory oversight and maintaining a flexible business environment for financial service providers.