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WBK Industry News - State Regulatory Developments

Texas Amends Regulations Regarding Mortgage Loan Servicers and Mortgage Loan Companies

The Finance Commissioner of Texas, on behalf of the Department of Savings and Mortgage Lending, has adopted provisions regarding the duties and responsibilities of mortgage loan servicers and mortgage loan companies. The amendments are effective June 30, 2016.

Prior to these amendments, the Texas Residential Mortgage Loan Servicer Registration Act (“RMLSRA”) required registrants under the RMLSRA to provide borrowers of each residential mortgage loan with the disclosure contained in Figure 7 TAC § 79.2(b) of the RMLSRA, which discloses how to submit a complaint about the servicing of a loan (“Disclosure”). As amended, the RMLSRA clarifies that the Disclosure is required to be provided only in relation to the servicing of residential mortgage loans on real estate located in Texas, and is not required to be provided in relation to the servicing of residential mortgage loans on real estate which is not located in Texas. The RMLSRA, as amended, also requires registrants servicing residential mortgage loans on real estate located in Texas to post the Disclosure on their website along with a statement reflecting that the Disclosure only applies to residential mortgage loans on real estate located in Texas.

Prior to these amendments, the Texas Residential Mortgage Loan Company Licensing and Registration Act (“RMLCLARA”) required that a RMLCLARA licensee’s books and records be complete, current, legible, readily accessible, and readily sortable. As amended, the RMLCLARA adds the requirement that licensees must ensure that such books and records are accurate. The RMLCLARA, as amended, also clarifies that the administrative action that may result from a failure to file a mortgage call report or a statement of condition report includes the assessment of an administrative penalty.

A copy of the amended provisions is available here: http://www.sos.state.tx.us/texreg/pdf/backview/0429/0429is.pdf.