WBK Industry News - State Regulatory Developments

Texas Amends Consumer Lending Regulations

The Texas Office of Consumer Credit Commissioner (OCCC) issued amended regulations as part of a general review and update to the state’s consumer lending rules.  The amendments are generally designed to: ensure consistency with current licensing terminology, agency procedures, and streamlined processes; provide flexibility to licensees; modernize or remove obsolete language; and make technical corrections.

Under Texas law, agencies are requires to review their regulations at least once every four years and propose amendments if warranted.  Among other things, the new regulations amend definitions in the existing regulations to make them clearer and to ensure they are consistent with current industry terminology and the agency’s actual practice and procedure; provide greater flexibility regarding the use of electronic signatures; change or clarify the requirements for what information and supporting documents must be disclosed or provided for a license application; provide additional protections for people who live in designated disaster areas; clarify the requirements for issuance of property insurance in connection with a loan; and clarify recordkeeping requirements.