HBA-JLV H.B. 1493 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 1493
By: Wise
Financial Institutions
77/17/2001
Enrolled



BACKGROUND AND PURPOSE 

The Texas Savings and Loan Department (department) protects the depositors
of Texas by ensuring the sage and sound operation of state-chartered
savings institutions.  In 1999, the legislature also gave the department
the responsibility for licensing mortgage brokers.  House Bill 1493 amends
the Mortgage Broker License Act regarding provisional licenses for and
inspection of mortgage brokers and loan officers. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated  to the Finance Commission of Texas in
SECTION 1 (Section 156.105, Finance Code) and in SECTION 5 of this bill. 

ANALYSIS

House Bill 1493 amends the Finance Code to modify provisions relating to
the regulation of mortgage brokers.  The bill requires the Finance
Commission of Texas (commission), by rule, to adopt one or more standard
forms for use by a mortgage broker or loan officer in representing that an
applicant for a mortgage loan is preapproved or has prequalified for the
loan.  The bill requires the commission to adopt rules requiring a licensed
mortgage broker or loan officer to use the forms adopted by the commission
not later than January 1, 2002.  The bill requires the savings and loan
commissioner (commissioner) to obtain criminal history record information
on an applicant from the Federal Bureau of Investigation. 

The bill requires each licensed mortgage broker to file a confidential
annual report with the commissioner on a form prescribed by the
commissioner with certain requirements.  

EFFECTIVE DATE

September 1, 2001.