S.B. No. 1900
 
 
 
 
AN ACT
  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 third-party service
  provider or state savings bank affiliate does not include a company
  or firm 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)  [maintain a physical office in this state; and
               [(8)]  provide financial statements and any other
  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[; and
               [(6)  maintain a physical office in this state].
         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 [in the same manner as funds of the
  Employees Retirement System of Texas], and the interest from these
  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.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1900 passed the Senate on    
  April 19, 2021, by the following vote: Yeas 31, Nays 0; and that
  the Senate concurred in House amendment on May 27, 2021, by the
  following vote: Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1900 passed the House, with
  amendment, on May 18, 2021, by the following vote: Yeas 114,
  Nays 23, two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor