Texas 2021 - 87th Regular

Texas House Bill HB4309 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87R6039 JES-F
2	2	By: Anchia H.B. No. 4309
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the regulatory authority of the savings and mortgage
8	8	lending commissioner; authorizing fees.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 92.554(a), Finance Code, is amended to
11	11	read as follows:
12	12	(a) On receipt of an application, the commissioner shall
13	13	submit to the Texas Register for publication in the next issue after
14	14	the date the application is received or publish in a newspaper of
15	15	general circulation that is printed in English in the county in
16	16	which the savings bank is to have the savings bank's principal
17	17	office:
18	18	(1) notice of the application;
19	19	(2) the date the application was filed; and
20	20	(3) the identity of each party to the application.
21	21	SECTION 2. Subchapter B, Chapter 96, Finance Code, is
22	22	amended by adding Section 96.0551 to read as follows:
23	23	Sec. 96.0551. REGULATION AND EXAMINATION OF CERTAIN RELATED
24	24	ENTITIES. (a) In this section, "state savings bank" has the
25	25	meaning assigned by Section 31.002.
26	26	(b) The commissioner may regulate and examine, to the same
27	27	extent as if the services or activities were performed by a state
28	28	savings bank on its own premises:
29	29	(1) the activities of a state savings bank affiliate;
30	30	and
31	31	(2) the services or activities of a third-party
32	32	service provider that a state savings bank or state savings bank
33	33	affiliate has contracted for or otherwise arranged to be performed
34	34	on behalf of the state savings bank or state savings bank affiliate.
35	35	(c) The commissioner may collect a fee from an examined
36	36	third-party service provider or affiliate in connection with each
37	37	examination to cover the cost of the examination or may collect that
38	38	fee from the state savings banks that use the examined third-party
39	39	service provider.
40	40	(d) For purposes of this section, a state savings bank
41	41	affiliate does not include a company in which ownership or
42	42	membership is limited to individuals and conditioned by law on the
43	43	existence and maintenance of professional licensing.
44	44	(e) To promote regulatory efficiency, if, in the preceding
45	45	24 months, a third-party service provider or affiliate has been
46	46	examined by a federal or state financial services regulatory agency
47	47	or by a member agency of the Federal Financial Institutions
48	48	Examination Council, or its successor agency, the commissioner may
49	49	accept the results of that examination instead of conducting the
50	50	commissioner's own examination of the third-party service provider
51	51	or affiliate. Nothing in this subsection shall be construed as
52	52	limiting or restricting the commissioner from participating in an
53	53	examination of a third-party service provider or affiliate
54	54	conducted by a federal or state financial services regulatory
55	55	agency or by a member agency of the Federal Financial Institutions
56	56	Examination Council, or its successor agency.
57	57	(f) A third-party service provider that refuses to submit to
58	58	examination or to pay an assessed fee for examination under this
59	59	section is subject to an enforcement action under Chapter 96. With
60	60	respect to a third-party service provider's refusal to submit to
61	61	examination, the commissioner may notify all state savings banks of
62	62	the refusal and warn that continued use of the third-party service
63	63	provider may constitute an unsafe and unsound banking practice.
64	64	SECTION 3. Section 97.006, Finance Code, is amended by
65	65	adding Subsections (f), (g), and (h) to read as follows:
66	66	(f) The commissioner may:
67	67	(1) examine a holding company that controls a state
68	68	savings bank to the same extent as if the holding company were a
69	69	state savings bank; and
70	70	(2) bring an enforcement action under Chapter 96
71	71	against a holding company described by Subdivision (1) or other
72	72	person that violates or participates in a violation of this
73	73	subtitle, an agreement filed with the commissioner under this
74	74	chapter, or a rule adopted by the finance commission or order issued
75	75	by the commissioner under this subtitle, as if the holding company
76	76	were a state savings bank.
77	77	(g) The grounds, procedures, and effects of an enforcement
78	78	action brought under Subsection (f) apply to a holding company, an
79	79	officer, director, or employee of a holding company, or a
80	80	controlling shareholder or other person participating in the
81	81	affairs of a holding company in the same manner as the grounds,
82	82	procedures, and effects apply to a state savings bank, an officer,
83	83	director, or employee of a state savings bank, or a controlling
84	84	shareholder or other person participating in the affairs of a state
85	85	savings bank.
86	86	(h) A state savings bank that is controlled by a holding
87	87	company that is not a Texas holding company shall be subject to all
88	88	laws of this state that are applicable to state savings banks that
89	89	are controlled by Texas holding companies.
90	90	SECTION 4. Section 156.2041(a), Finance Code, is amended to
91	91	read as follows:
92	92	(a) To be issued a mortgage company license, an applicant
93	93	must:
94	94	(1) submit a completed application together with the
95	95	payment of applicable fees through the Nationwide Mortgage
96	96	Licensing System and Registry;
97	97	(2) designate control persons for the mortgage company
98	98	through the Nationwide Mortgage Licensing System and Registry;
99	99	(3) designate an individual licensed as a residential
100	100	mortgage loan originator under Chapter 157 as the company's
101	101	qualifying individual;
102	102	(4) submit a completed branch application through the
103	103	Nationwide Mortgage Licensing System and Registry for each branch
104	104	office that engages in residential mortgage loan activity on
105	105	residential real estate located in this state;
106	106	(5) not be in violation of this chapter, a rule adopted
107	107	under this chapter, or any order previously issued by the
108	108	commissioner to the applicant;
109	109	(6) have the company name or assumed name properly
110	110	filed with either the secretary of state or with the appropriate
111	111	county clerk's office; and
112	112	(7) [maintain a physical office in this state; and
113	113	[(8)] provide financial statements and any other
114	114	information required by the commissioner.
115	115	SECTION 5. Section 156.2042(a), Finance Code, is amended to
116	116	read as follows:
117	117	(a) To be issued a credit union subsidiary organization
118	118	license, an applicant must:
119	119	(1) submit a completed application together with the
120	120	payment of applicable fees through the Nationwide Mortgage
121	121	Licensing System and Registry;
122	122	(2) designate control persons for the organization
123	123	through the Nationwide Mortgage Licensing System and Registry;
124	124	(3) designate an individual licensed as a residential
125	125	mortgage loan originator under Chapter 157 as the company's
126	126	qualifying individual;
127	127	(4) submit a completed branch application through the
128	128	Nationwide Mortgage Licensing System and Registry for each branch
129	129	office that engages in residential mortgage loan activity on
130	130	residential real estate located in this state; and
131	131	(5) not be in violation of this chapter, a rule adopted
132	132	under this chapter, or any order previously issued by the
133	133	commissioner to the applicant[; and
134	134	[(6) maintain a physical office in this state].
135	135	SECTION 6. Section 156.501(c), Finance Code, is amended to
136	136	read as follows:
137	137	(c) Amounts in the recovery fund may be invested and
138	138	reinvested in accordance with Chapter 2256, Government Code, and
139	139	under the prudent person standard described by Section 11b, Article
140	140	VII, Texas Constitution [in the same manner as funds of the
141	141	Employees Retirement System of Texas], and the interest from these
142	142	investments shall be deposited to the credit of the fund. An
143	143	investment may not be made under this subsection if the investment
144	144	will impair the necessary liquidity required to satisfy judgment
145	145	payments awarded under this subchapter.
146	146	SECTION 7. The following provisions of the Finance Code are
147	147	repealed:
148	148	(1) Sections 156.212(a) and (a-1);
149	149	(2) Sections 156.501(d) and (f); and
150	150	(3) Section 156.502(b).
151	151	SECTION 8. Section 92.554(a), Finance Code, as amended by
152	152	this Act, applies only to an application filed on or after the
153	153	effective date of this Act. An application filed before the
154	154	effective date of this Act is governed by the law in effect on the
155	155	date the application was filed, and the former law is continued in
156	156	effect for that purpose.
157	157	SECTION 9. Section 156.501(c), Finance Code, as amended by
158	158	this Act, applies only to an investment made on or after the
159	159	effective date of this Act. An investment made before the effective
160	160	date of this Act is governed by the law in effect on the date the
161	161	investment was made, and the former law is continued in effect for
162	162	that purpose.
163	163	SECTION 10. This Act takes effect September 1, 2021.