Bill Text: TX SB1900 | 2021-2022 | 87th Legislature | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the regulatory authority of the savings and mortgage lending commissioner; authorizing fees.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2021-06-18 - Effective on 9/1/21 [SB1900 Detail]
Download: Texas-2021-SB1900-Comm_Sub.html
Bill Title: Relating to the regulatory authority of the savings and mortgage lending commissioner; authorizing fees.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2021-06-18 - Effective on 9/1/21 [SB1900 Detail]
Download: Texas-2021-SB1900-Comm_Sub.html
By: Zaffirini | S.B. No. 1900 | |
(In the Senate - Filed March 12, 2021; March 26, 2021, read | ||
first time and referred to Committee on Business & Commerce; | ||
April 8, 2021, reported favorably by the following vote: Yeas 9, | ||
Nays 0; April 8, 2021, sent to printer.) | ||
|
||
|
||
relating to the regulatory authority of the savings and mortgage | ||
lending commissioner; authorizing fees. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 92.554(a), Finance Code, is amended to | ||
read as follows: | ||
(a) On receipt of an application, the commissioner shall | ||
submit to the Texas Register for publication in the next issue after | ||
the date the application is received or publish in a newspaper of | ||
general circulation that is printed in English in the county in | ||
which the savings bank is to have the savings bank's principal | ||
office: | ||
(1) notice of the application; | ||
(2) the date the application was filed; and | ||
(3) the identity of each party to the application. | ||
SECTION 2. Subchapter B, Chapter 96, Finance Code, is | ||
amended by adding Section 96.0551 to read as follows: | ||
Sec. 96.0551. REGULATION AND EXAMINATION OF CERTAIN RELATED | ||
ENTITIES. (a) In this section, "state savings bank" has the | ||
meaning assigned by Section 31.002. | ||
(b) The commissioner may regulate and examine, to the same | ||
extent as if the services or activities were performed by a state | ||
savings bank on its own premises: | ||
(1) the activities of a state savings bank affiliate; | ||
and | ||
(2) the services or activities of a third-party | ||
service provider that a state savings bank or state savings bank | ||
affiliate has contracted for or otherwise arranged to be performed | ||
on behalf of the state savings bank or state savings bank affiliate. | ||
(c) The commissioner may collect a fee from an examined | ||
third-party service provider or affiliate in connection with each | ||
examination to cover the cost of the examination or may collect that | ||
fee from the state savings banks that use the examined third-party | ||
service provider. | ||
(d) For purposes of this section, a state savings bank | ||
affiliate does not include a company in which ownership or | ||
membership is limited to individuals and conditioned by law on the | ||
existence and maintenance of professional licensing. | ||
(e) To promote regulatory efficiency, if, in the preceding | ||
24 months, a third-party service provider or affiliate has been | ||
examined by a federal or state financial services regulatory agency | ||
or by a member agency of the Federal Financial Institutions | ||
Examination Council, or its successor agency, the commissioner may | ||
accept the results of that examination instead of conducting the | ||
commissioner's own examination of the third-party service provider | ||
or affiliate. Nothing in this subsection shall be construed as | ||
limiting or restricting the commissioner from participating in an | ||
examination of a third-party service provider or affiliate | ||
conducted by a federal or state financial services regulatory | ||
agency or by a member agency of the Federal Financial Institutions | ||
Examination Council, or its successor agency. | ||
(f) A third-party service provider that refuses to submit to | ||
examination or to pay an assessed fee for examination under this | ||
section is subject to an enforcement action under Chapter 96. With | ||
respect to a third-party service provider's refusal to submit to | ||
examination, the commissioner may notify all state savings banks of | ||
the refusal and warn that continued use of the third-party service | ||
provider may constitute an unsafe and unsound banking practice. | ||
SECTION 3. Section 97.006, Finance Code, is amended by | ||
adding Subsections (f), (g), and (h) to read as follows: | ||
(f) The commissioner may: | ||
(1) examine a holding company that controls a state | ||
savings bank to the same extent as if the holding company were a | ||
state savings bank; and | ||
(2) bring an enforcement action under Chapter 96 | ||
against a holding company described by Subdivision (1) or other | ||
person that violates or participates in a violation of this | ||
subtitle, an agreement filed with the commissioner under this | ||
chapter, or a rule adopted by the finance commission or order issued | ||
by the commissioner under this subtitle, as if the holding company | ||
were a state savings bank. | ||
(g) The grounds, procedures, and effects of an enforcement | ||
action brought under Subsection (f) apply to a holding company, an | ||
officer, director, or employee of a holding company, or a | ||
controlling shareholder or other person participating in the | ||
affairs of a holding company in the same manner as the grounds, | ||
procedures, and effects apply to a state savings bank, an officer, | ||
director, or employee of a state savings bank, or a controlling | ||
shareholder or other person participating in the affairs of a state | ||
savings bank. | ||
(h) A state savings bank that is controlled by a holding | ||
company that is not a Texas holding company shall be subject to all | ||
laws of this state that are applicable to state savings banks that | ||
are controlled by Texas holding companies. | ||
SECTION 4. Section 156.2041(a), Finance Code, is amended to | ||
read as follows: | ||
(a) To be issued a mortgage company license, an applicant | ||
must: | ||
(1) submit a completed application together with the | ||
payment of applicable fees through the Nationwide Mortgage | ||
Licensing System and Registry; | ||
(2) designate control persons for the mortgage company | ||
through the Nationwide Mortgage Licensing System and Registry; | ||
(3) designate an individual licensed as a residential | ||
mortgage loan originator under Chapter 157 as the company's | ||
qualifying individual; | ||
(4) submit a completed branch application through the | ||
Nationwide Mortgage Licensing System and Registry for each branch | ||
office that engages in residential mortgage loan activity on | ||
residential real estate located in this state; | ||
(5) not be in violation of this chapter, a rule adopted | ||
under this chapter, or any order previously issued by the | ||
commissioner to the applicant; | ||
(6) have the company name or assumed name properly | ||
filed with either the secretary of state or with the appropriate | ||
county clerk's office; and | ||
(7) [ |
||
[ |
||
information required by the commissioner. | ||
SECTION 5. Section 156.2042(a), Finance Code, is amended to | ||
read as follows: | ||
(a) To be issued a credit union subsidiary organization | ||
license, an applicant must: | ||
(1) submit a completed application together with the | ||
payment of applicable fees through the Nationwide Mortgage | ||
Licensing System and Registry; | ||
(2) designate control persons for the organization | ||
through the Nationwide Mortgage Licensing System and Registry; | ||
(3) designate an individual licensed as a residential | ||
mortgage loan originator under Chapter 157 as the company's | ||
qualifying individual; | ||
(4) submit a completed branch application through the | ||
Nationwide Mortgage Licensing System and Registry for each branch | ||
office that engages in residential mortgage loan activity on | ||
residential real estate located in this state; and | ||
(5) not be in violation of this chapter, a rule adopted | ||
under this chapter, or any order previously issued by the | ||
commissioner to the applicant[ |
||
[ |
||
SECTION 6. Section 156.501(c), Finance Code, is amended to | ||
read as follows: | ||
(c) Amounts in the recovery fund may be invested and | ||
reinvested in accordance with Chapter 2256, Government Code, and | ||
under the prudent person standard described by Section 11b, Article | ||
VII, Texas Constitution [ |
||
investments shall be deposited to the credit of the fund. An | ||
investment may not be made under this subsection if the investment | ||
will impair the necessary liquidity required to satisfy judgment | ||
payments awarded under this subchapter. | ||
SECTION 7. The following provisions of the Finance Code are | ||
repealed: | ||
(1) Sections 156.212(a) and (a-1); | ||
(2) Sections 156.501(d) and (f); and | ||
(3) Section 156.502(b). | ||
SECTION 8. Section 92.554(a), Finance Code, as amended by | ||
this Act, applies only to an application filed on or after the | ||
effective date of this Act. An application filed before the | ||
effective date of this Act is governed by the law in effect on the | ||
date the application was filed, and the former law is continued in | ||
effect for that purpose. | ||
SECTION 9. Section 156.501(c), Finance Code, as amended by | ||
this Act, applies only to an investment made on or after the | ||
effective date of this Act. An investment made before the effective | ||
date of this Act is governed by the law in effect on the date the | ||
investment was made, and the former law is continued in effect for | ||
that purpose. | ||
SECTION 10. This Act takes effect September 1, 2021. | ||
* * * * * |