Find out the latest information on lending in Texas.
Find out more about BMG and what we can do for you
The Finance Commission of Texas (“Finance Commission”) proposes amendments to Sections 80.1, 80.2, 80.8, 80.9, 80.10, 80.11, 80.12, 80.13, 80.14, 80.15, 80.20, 80.21, 80.22, and 80.23 of the Mortgage Broker and Loan Officer Licensing regulations contained in the Texas Administrative Code at 7 TAC Chapter 80. In addition, the Finance Commission proposes new Subchapter L, Licensing, Sections 80.301, 80.302, 80.303, 80.304, 80.305, 80.306, and 80.307. The text of these proposed amended and new regulations (“Proposed Rules”) may be found in the above cited issue of the Texas Register, and you are advised to read these Proposed Rules and not rely on the summary contained in this memorandum. Full Article and Downloads
Effective January 7, 2010, the Finance Commission of Texas amended the Mortgage Banker Rules (Rules) contained in the Texas Administrative Code, 7 TAC Chapter 81. Sections 81.1 and 81.2 of the Rules are amended and new Rules 81.3 through 81.19 are added. The text of these amended and new rules are attached to this memorandum. The amended and new Rules were adopted by the Finance Commssion to implement the provisions of House Bills 10, 963 and 2779 passed by the 81st Texas Legislature (see our November 13, 2009 memorandum on House Bills 10 and 2779) and to assist the Texas Department of Savings and Mortgage Lending (TDSML) in preparing to participate in the National Mortgage License System Registry. House Bills 10 and 2779 make substantial modifications to Chapter 157 of the Finance Code (Mortgage Banker Registration and Residential Mortgage Loan Originator License Act) relating to the registration and regulation of mortgage bankers and residential mortgage loan originators. These amended and new Rules substantially mirror the current Mortgage Broker and Loan Officer Licensing rules in the Texas Administrative Code, 7 TAC Chapter 80, (see our November 13, 2009 memorandum). The amended and new Rules relate to the following sections of Chapter 157 of the Finance Code: Sections 157.001, 157.002, 157.007, 157.008, 157.012, 157.015, 157.016, 157.020, and 157.021.
On January 8, 2009, the Texas Court of Appeals, Third District, at Austin, issued its opinion1 in the civil suit filed by the Association of Community Organizations for Reform Now (ACORN) seeking to invalidate a number of the home equity interpretations (Rules) issued jointly by the Finance Commission of Texas and the Credit Union Commission of Texas (Commissions). The ACORN opinion, in addition to other decisions affecting the Rules that will be the subject of a later memorandum, affirmed the trial court’s judgment invalidating Rule 153.1(11), which defines “interest” for purposes of the three percent fee cap imposed by Section 50(a)(6)(E) of Article XVI of the Texas Constitution (3% fee cap). Rule 153.1(11) defines interest to be “interest as defined in the Texas Finance Code §301.002(4) [sic] and as interpreted by the courts.” Section 301.002(a)(4) defines interest, in pertinent part, as “compensation for the use, forbearance, or detention of money.” Full Article and Downloads
On December 30, 2009, FHA, in accordance with the regulatory changes to 24 CFR §203.27, issued M.L. 2009-53 that, among other matters, removed the one percent origination fee cap for FHA’s standard mortgage insurance programs. The Home Equity Conversion Mortgage (HECM) and the Section 203(k) Rehabilitation Mortgage Insurance programs retain their statutory origination fee caps. As noted in No. 2 below, in order to correct a misstatement, FHA revised M.L. 2009-53. The full text of revised M.L. 2009-53, which is attached to this memorandum, is briefly summarized below: Full Article and Downloads
This is the third and last legislative update from the 81st Regular Session of the Texas Legislature, 2009, prepared by this firm and summarizes House and Senate Bills effective on September 1, 2009, that we consider are of interest to our clients.
