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.