Texas Administrative Code

(a) Definitions. For purposes of this section, the following definitions apply, unless the context clearly indicates otherwise: (1) "Administrative office" means any office of a mortgage company that is separate and distinct from its main office or a branch office, whether locate…

(a) Definitions. For purposes of this section, the following definitions apply, unless the context clearly indicates otherwise: (1) "Catastrophic event" means an event, other than a security event, that is unforeseen and results in extraordinary levels of damage or disruption to …

Any notice or disclosure (notice) required by Finance Code Chapter 156, or this chapter, must be easily readable. A notice is deemed to be easily readable if it is in at least 12-point font and uses a typeface specified by this section. A font point generally equates to 1/72 of a…

For purposes of this chapter, and in SML's administration and enforcement of Finance Code Chapter 156 (other than Subchapters F and G), the following definitions apply, unless the contest clearly indicates otherwise: (1) "Application," as used in Finance Code § 156.002(14) and pa…

(a) Qualified Individual Required. A mortgage company must appoint at least one licensed originator to be the mortgage company's Qualified Individual. As provided by Finance Code § 156.002 , the Qualified Individual is a personal representative of the mortgage company and is deem…

(a) Sponsorship Required. A mortgage company acts through one or more originators who must be sponsored by the mortgage company in NMLS. To sponsor an originator, the mortgage company must first register a relationship with the originator in NMLS. When a relationship has been reg…

(a) The executive director, on behalf of the commission, may accept gifts, grants, and donations upon a determination that the donation is for purposes consistent with Texas Agriculture Code, Chapter 161. (1) The executive director shall report all accepted gifts and donations to…

The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise. (1) Commission--The Texas Animal Health Commission. (2) Commissioner--A member of the commission appointed by the Governor. (3) Employee--A…

The purpose of this chapter is to establish rules for acceptance of private donations and to establish standards of conduct to govern the relationships between commissioners and employees of the Texas Animal Health Commission and private donors. Notes 4 Tex. Admin. Code § 56.1 Th…

(a) Purpose. This section clarifies and establishes requirements related to examinations of a mortgage company and its sponsored originators conducted by SML under Finance Code § 156.301 . (b) State Examination System (SES). Examinations are conducted in SES (stateexaminationsyst…

(a) Purpose. This section clarifies and establishes requirements related to investigations of a mortgage company and its sponsored originators conducted by SML under Finance Code § 156.301 . (b) Reasonable Cause. SML will conduct an investigation if it has reasonable cause to do …

(a) Purpose. This section clarifies and establishes requirements related to the confidentiality of information obtained by SML during an examination, investigation, or inspection, as provided by Finance Code § 156.301 . (b) Confidential Information. All information obtained by SM…

(a) Purpose. This section clarifies and establishes requirements related to the disclosure a mortgage company is required to make under Finance Code § 156.004 . (b) Specific Notice to Applicant. A mortgage company must send written notice to a mortgage applicant concerning SML's …

(a) Conditional Pre-Qualification Letter. Except as provided by subsection (c) of this section, when provided to a mortgage applicant or prospective mortgage applicant, written confirmation of conditional pre-qualification (conditional pre-qualification letter) must include the i…

(a) Fraudulent, Misleading, or Deceptive Practices. The following conduct by a mortgage company or its sponsored originators constitutes fraudulent and dishonest dealings for purposes of Finance Code § 156.303(a)(3) : (1) knowingly misrepresenting the mortgage company's or sponso…

(a) Purpose and Applicability. This section clarifies and establishes requirements related to the books and records a mortgage company and its sponsored originators are required to keep under Finance Code § 156.301 . Subsection (c) of this section applies to a mortgage company an…

(a) Purpose. This section clarifies and establishes requirements related to the mortgage call reports a mortgage company is required to file under Finance Code § 156.213 . (b) NMLS Filing Requirements. Mortgage call reports must be filed in NMLS by the deadlines established by NM…

(a) Criminal conduct. The department may suspend or revoke a license or permit issued to any person who has been finally convicted of or assessed an administrative penalty for a violation of: (1) Parks and Wildlife Code, Chapter 43, Subchapter C, E, G, L, R, or R-1; (2) a provisi…

(a) Definitions. For purposes of this section, the following definitions apply, unless the context clearly indicates otherwise: (1) "Advertisement" means a commercial message in any medium that promotes, directly or indirectly, a residential mortgage loan transaction or is otherw…

(a) An applicant may request a review of a decision of the department to refuse issuance of a license or permit. (1) An applicant seeking review of a decision of the department with respect to the issuance or renewal of a license or permit must submit a written request for the re…

The provisions of this chapter apply to the following types of permits and licenses. (1) Aerial Wildlife Management; (2) Alligator - all; (3) Bait Dealer - all; (4) Bait Shrimp Dealer; (5) CITES Tag Dealer - all; (6) Commercial Fishing Boat - all; (7) Commercial Mussel and Clam F…

(a) The department may prohibit any person from engaging in activities regulated under a permit or license as a subpermittee, agent, or volunteer if that person is prohibited for any reason from obtaining the permit or license or from engaging in activities authorized by the perm…

(a) A licensee or permittee may request a review of a preliminary decision of the department to seek revocation or suspension of a license or permit. (1) An applicant seeking review of a preliminary decision of the department with respect to the revocation or suspension of a lice…

This chapter governs SML's administration and enforcement of Finance Code Chapter 156, the Residential Mortgage Loan Company Licensing and Registration Act (other than Subchapters F and G), concerning the licensing, registration, and operations of mortgage companies, financial se…

(a) License Required. A person, unless exempt as provided by Finance Code § 156.202 , is required to be licensed as a mortgage company under Finance Code Chapter 156 if the person engages in or conducts the business of a mortgage company or advertises or holds that person out to …

The commission may not accept a gift from a person who is a party to a contested case pending before the commission from the inception of the case until the 30th day after the date the decision in the case becomes final under § 2001.144 of the Texas Government Code. In this secti…

(a) A commissioner or employee shall not accept or solicit any gift, favor, or service from a private donor that might reasonably tend to influence the commissioner's or employee's official conduct. (b) A commissioner or employee shall not accept employment or engage in any busin…

(a) Donations to the commission may be for any amount and for specified or unspecified purposes. (b) Conditional or restricted donations for purposes specified by the donor may be accepted only if the specified purpose is consistent with the mission, purpose, legal authority, and…

The commission may solicit grants, gifts, and donations limited to purposes consistent with Chapter 161 of the Texas Agriculture Code and in accordance with § 56.6 of this chapter. Notes 4 Tex. Admin. Code § 56.4 The provisions of this §56.4 adopted to be effective December 11, 2…

A violation of Finance Code Chapter 156, or this chapter, does not render an otherwise lawfully taken lien invalid or unenforceable. Notes 7 Tex. Admin. Code § 56.6 Adopted by Texas Register, Volume 49, Number 46, November 15, 2024, TexReg 9209 , eff. 11/23/2024

The calculation of any time period measured in days by Finance Code Chapter 156, or this chapter, is made using calendar days, unless clearly stated otherwise. In computing a period of calendar days, the first day is excluded and the last day is included. If the last day of any p…

(a) NMLS. Applications for licensure must be submitted through NMLS and must be made using the current form prescribed by NMLS. SML has published application checklists on the NMLS Resource Center website (nationwidelicensingsystem.org; viewable on the "State Licensing Requiremen…

(a) License Fees. The license fee is determined by the Commissioner in an amount not to exceed the maximum amount specified by Finance Code § 156.203(b) , exclusive of fees charged by NMLS, as described in subsection (b) of this section. The Commissioner may establish different f…

(a) A license may be renewed on: (1) timely submission of a completed renewal application (renewal request) in NMLS together with payment of all required fees; and (2) a determination by SML that the mortgage company continues to meet the minimum requirements for licensure, inclu…

(a) NMLS License Status. SML is required to assign a status to the license in NMLS. The license status is displayed in NMLS and on the NMLS Consumer Access website (nmlsconsumeraccess.org). SML is limited to the license status options available in NMLS. The NMLS Resource Center (…

(a) Conditional License; Terms and Conditions. The Commissioner may, in his or her sole discretion, issue a license on a conditional basis. A conditional license will be assigned the license status "Approved - Conditional" in NMLS. Reasonable terms and conditions for a conditiona…

(a) Surrender Request. A mortgage company may seek surrender of the license by filing a license surrender request (request) in NMLS. The request must be made using the current form prescribed by NMLS. SML will review the request and determine whether to grant it. SML may not gran…

(a) Escheat Suspense Account; Escheat Log. Funds owed to or held for the benefit of a mortgage applicant or other customer of the mortgage company for more than one year (i.e., unclaimed funds) must be transferred to an escheat suspense account. The mortgage company must maintain…

(a) Purpose. Finance Code Chapter 156 provides that certain decisions of the Commissioner adverse to a mortgage company or other person may be appealed and offers the opportunity for an adjudicative hearing to challenge the decision. This section establishes various deadlines by …

(a) Adjudicative hearings conducted under Finance Code Chapter 156 are governed by the rules in Chapter 9 of this title (concerning Rules of Procedure for Contested Hearings, Appeals, and Rulemakings). Contested cases referred to the State Office of Administrative Hearings (SOAH)…

Any notice or disclosure required by Finance Code Chapter 156, or this chapter, may be provided and signed in accordance with state and federal law governing electronic signatures and delivery of electronic documents. The UETA and E-Sign Act include requirements for electronic si…

(a) All provisions of this chapter are severable. (b) If any application of any provision of this rule is held to be invalid for any reason, all valid provisions are severable from the invalid provisions and remain in effect. If any section or portion of a section is held to be i…

District Attorneys and County Attorneys presiding in a district or county with a population of 400,000 or more persons must submit an initial, and quarterly and annual reports relating to criminal matters, and the interest of the state, to the Office of the Attorney (OAG) in a ma…

The following words and terms, when used in this subchapter, have the following meanings: (1) "Case file" means all documents, notes, memoranda, and correspondence, in any format such as handwritten, typed, electronic, or otherwise, including drafts and final copies, that were pr…

Reporting entities must submit electronic copies of the following information for the prior reporting year in accordance with this chapter. (1) All policies, rules, and orders, including internal operating procedures and public policy documents, that were modified during the prio…

(a) Deadlines. (1) The quarterly report under §56.3 of this chapter (relating to Quarterly and Initial Reporting Requirements) is due within 30 days of the beginning of each new reporting quarter for all reporting events that occurred in the prior reporting quarter. (2) The repor…

Reporting entities must implement document retention policies reasonably designed to preserve all documents which are, or may be, subject to the requirements in this chapter. The retention policies must preserve documents for at least two years after the dates when they are due t…