Current through Reg. 49, No. 38; September 20, 2024
(a) Definitions. The following terms, when
used in this section, will have the following meanings, unless the context
clearly indicates otherwise.
(1)
"Administrative office" means any office of a mortgage banker that is separate
and distinct from its main office or a branch office, whether located in Texas
or not, at which the mortgage banker conducts residential mortgage loan
business in Texas. The term does not include a "remote location" as defined by
this section. The term includes:
(A) an
office or location at which the employees of the mortgage banker act solely in
the capacity of a "loan processor or underwriter," as that term is defined by
Tex. Fin. Code §180.002;
(B)
an office or location at which the employees of the mortgage banker perform
solely administrative or clerical tasks on behalf of an individual licensed as
an originator, as provided by Tex. Fin. Code §180.002(19)(B)(i);
(C) with respect to a mortgage banker whose
registration under Finance Code Chapter 157 reflects it acts as a servicer of
residential mortgage loans, an office or location at which a mortgage banker or
its employees solely perform activities relating to residential mortgage loan
servicing, including:
(i) collection of the
residential mortgage loan;
(ii) the
administration of escrow accounts;
(iii) loss mitigation;
(iv) administering or enforcing the terms of
a residential mortgage loan; or
(v)
administering the terms of an investor servicing agreement for a residential
mortgage loan; or
(D) an
office or location which conducts any combination of activities described by
subparagraphs (A) - (C) of this paragraph.
(2) "Branch office" means any office a
mortgage banker maintains that is separate and distinct from its main office,
whether located in Texas or not, at which it conducts residential mortgage loan
origination business with mortgage applicants or prospective mortgage
applicants in Texas or concerning residential real estate located in Texas. The
term does not include:
(A) an office or
location at which the employees of the mortgage banker act solely in the
capacity of a "loan processor or underwriter," as that term is defined by Tex.
Fin. Code §180.002;
(B) an
office or location at which the employees of the mortgage banker perform solely
administrative or clerical tasks on behalf of an individual licensed as an
originator, as provided by Tex. Fin. Code §180.002(19)(B)(i);
(C) with respect to a mortgage banker whose
registration under Finance Code Chapter 157 reflects it acts as a servicer of
residential mortgage loans, an office or location at which a mortgage banker or
its employees solely perform activities relating to residential mortgage loan
servicing, including:
(i) collection of the
residential mortgage loan;
(ii) the
administration of escrow accounts;
(iii) loss mitigation;
(iv) administering or enforcing the terms of
a residential mortgage loan; or
(v)
administering the terms of an investor servicing agreement for a residential
mortgage loan;
(D) an
office or location which conducts any combination of activities described by
subparagraphs (A) - (C) of this paragraph; or
(E) a "remote location" as defined by this
section.
(3) "Main
office" means the office the mortgage banker has listed in its NMLS
registration (MU1 filing) as its "main address" (principal address) under
"identifying information," and is therefore registered with the
Department.
(4) "Registered office"
means a physical office of the mortgage banker that is registered with the
Department as its main office or a branch office.
(5) "Remote location" means a location other
than a registered office or an administrative office of the mortgage banker
from which the employees or sponsored originators of the mortgage banker
conduct residential mortgage loan business as provided by subsection (c) of
this section.
(b) Office
Requirements. A mortgage banker must register any office constituting the main
office or a branch office of the mortgage banker. A mortgage banker must also
register any office or location it advertises or promotes to the general public
as an office or location at which the mortgage banker's sponsored originators
meet in-person with mortgage applicants or prospective mortgage applicants. A
registered office of the mortgage banker must be a physical office and have a
permanent physical or street address (a post office box or other similar
arrangement is not sufficient). The main office or a branch office must be
established by the mortgage banker or mortgage company. An originator cannot
establish his or her own office other than an office or location from which he
or she performs remote work as provided by subsection (c) of this
section.
(c) Authorization for
Remote Work. The employees of a mortgage banker and its sponsored originators
may conduct business and work from a remote location to the same extent as if
such employee or originators were physically present at a licensed or
registered office of the mortgage banker; provided:
(1) maintains appropriate safeguards for the
mortgage banker and its consumer data, information, and records, including the
use of secure virtual private networks and data storage encryption (including
cloud storage) where appropriate;
(2) employs appropriate risk-based monitoring
and oversight processes for work performed from a remote location and maintains
records of those processes;
(3)
ensures that physical records containing consumer information are not
maintained at a remote location (as defined by this section) and any electronic
records containing consumer information located at or accessible from the
remote location are secured;
(4)
ensures that consumer information and records of the mortgage banker, including
written procedures and training for work from remote locations authorized under
this section, are accessible and available to the Commissioner or the
Commissioner's designee on request;
(5) provides appropriate training to its
employees and sponsored originators to ensure that remote employees or
sponsored originators work in an environment conducive and appropriate to
consumer privacy; and
(6) adopts,
maintains, and follows written procedures to ensure that:
(A) the mortgage banker and its employees and
sponsored originators comply with this section; and
(B) the employees and sponsored originators
do not perform an activity from a remote location that would be prohibited at a
registered office or administrative office of the mortgage banker.
