The Federal Reserve Board, the Bureau of Consumer Financial Protection, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency issued a joint statement on September 11, 2018 stating that supervisory guidance does not have the force and effect of law, and the agencies do not take enforcement actions based on supervisory guidance. This pronouncement is a significant departure from the guidance of the agencies under the Obama administration, where both commentary and enforcement actions were deemed by certain of the agencies to be elevated to the force of law.
Please let us know if you have any questions regarding this information.
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As you may be aware, the Texas Department of Savings and Mortgage Lending (“SML”) is the subject of Sunset Review this year. The Texas Sunset Commission conducted their first hearing last Thursday, May 24th. Doug Foster, the former Commissioner of the SML and the Director of Regulatory Affairs for Polunsky Beitel Green, among others, testified before the Commission. This memo outlines the details of that hearing.
Please let us know if you have any questions regarding this information.
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This is a Memo in regard to the Sunset Review of the Texas Department of Savings & Mortgage Lending. The Texas Sunset Commission has recently released its report, which recommends abolishing the Texas Department of Savings and Mortgage Lending (SML) and transferring its regulatory duties to the Texas Banking Department. The Sunset Commission has scheduled hearings for the Finance Commission of Texas and its agencies at 9:00am Thursday, May 24, 2018, in Room E2.030, Capital Extension, in Austin. This memo outlines the details of the process and the potential implications of eliminating this department.
Please let us know if you have any questions regarding this information.
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Please be advised that the publication date in the Federal Register for the new TRID Final Rule addressing the “black hole” is May 2, 2018. The Black Hole refers to the inability, under the original TRID rule, for a Lender to reset tolerances with a Closing Disclosure, except during the four business days prior to closing.
Please let us know if you have any questions regarding this information.
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This memo concerns the most recent Texas Attorney General Opinion issued on February 26, 2018 stating that the Texas Constitution, article XVI, subsection 50(a)(6)(H) prohibits a U.S. Department of Veterans Affairs cash-out refinance loan. The complete Attorney General Opinion and explanation has been included at the end of the Client Memo.
Please let us know if you have any questions regarding this information.
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We wish to advise you that the Texas Finance Commission has APPROVED adoption of certain interpretative guidance regarding home equity lending in Texas. This proposed guidance was also considered and approved for adoption when the Texas Credit Union Commission which met on March 9, 2018. The new interpretations should assist Texas mortgage lenders in more easily implementing the recently enacted changes to home equity lending in Texas.
Please let us know if you have any questions regarding this information.
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This memo advises of a proposed adoption of certain interpretative guidance by the Texas Finance Commission regarding home equity lending in Texas. The proposed guidance will be considered for adoption when the Texas Finance Committee meets on February 16, 2018.
Please let us know if you have any questions regarding this information.
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This memo describes the changes to the Rules for the Refinance of an Existing Texas Home Equity Loan to a Non-Home Equity Loan. We have also provided a sample of the affidavit.
Please let us know if you have any questions regarding this information.
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Sample Affidavit Regarding Refinance of an Existing Home Equity Loan to a Non-Home Equity Loan
The Home Equity Constitutional Amendment has now passed and takes effect January 1, 2018. We hope you will find the following information useful in your implementation for both a timeline and all in one place tool for your Texas Home Equity questions. Also, attached are the constitutional changes from the official Senate bill.
Please let us know if you have any questions regarding this information.
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SJR - Home Equity Changes
The Constitutional Amendment to Home Equity Lending was passed by the voters of Texas. Attached is a Client Memo regarding the changes which will be effective January 1, 2018. Also, attached are the constitutional changes from the official Senate bill.
Please let us know if you have any questions regarding this information.
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SJR - Home Equity Changes
This memo advises of the passage of SJR 60 by the Texas House and Senate in the form of a constitutional amendment. A copy of the proposed amendments can be found at the link below.
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SJR - Home Equity Changes
This memo describes the changes to the Texas Durable Power of Attorney. We have also provided a sample of the new Durable Power of Attorney.
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Sample Texas Statutory Durable Power of Attorney
This memo regards bills from the 85th Texas Legislature that may impact mortgage lending and the financial services industry.
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This memo regards a recent decision of one of the Texas Court of Civil Appeals Courts that impacts Texas Home Equity Lending.
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This memo document offers some suggestions about Mortgage Loan Officers renewing their Texas state license as well as information about other state renewal requirements.
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As everyone should know by now, the Know Before You Owe rules regarding the TILA RESPA Integrated Disclosures go into effect for applications taken on or after October 3, 2015.
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On Friday June 25, 2015, the United States Supreme Court rendered its decision in the Texas Department of Housing and Community Affairs case.
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On Friday June 26, 2015 at 9:00 AM, the United States Supreme Court rendered its decision in the Obergefell case.
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On June 1, 2015, the United States Supreme Court issued a ruling in Bank of America, N.A. vs. Caulkett1, an important ruling in protecting the lien rights of second lienholders.
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The Texas Department of Savings and Mortgage Lending is experiencing an increase in violations for failure to provide complete versions of Texas State required disclosure forms.
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As most of you are probably aware, a major change is coming in the mortgage industry on August 1, 2015.
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As you are probably aware, on January 31, 2014, the Texas Supreme Court issued its supplemental decision in The Finance Commission of Texas, et al v. Valerie Norwood, et al, and held that, in the context of a transaction originated under Article XVI, Section 50a6 of the Texas Constitution (a “Texas Home Equity Loan”) both pre-paid per diem interest and bona fide discount points are “interest” and are NOT fees “necessary to originate, evaluate, maintain, record, insure, or service” the loan and are therefore NOT subject to the 3% fee cap applicable to a Texas Home Equity Loan.
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As we previously informed you, the Texas Finance Commission has been working on the proposed amendments to the Texas Administrative Code to implement the Norwood decision.
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As you are probably aware, on January 31, 2014, the Texas Supreme Court issued its supplemental decision in The Finance Commission of Texas, et al v. Valerie Norwood, et al, and held that, in the context of a transaction originated under Article XVI, Section 50a6 of the Texas Constitution (a “Texas Home Equity Loan”) both pre-paid per diem interest and bona fide discount points are “interest” and are NOT fees “necessary to originate, evaluate, maintain, record, insure, or service” the loan and are therefore NOT subject to the 3% fee cap applicable to a Texas Home Equity Loan.
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Today the Texas Supreme Court rendered its Opinion in Sims v. Carrington Mortgage Services. In this case, the United States Court of Appeals for the Fifth Circuit certified the four questions to the Texas Supreme Court regarding whether a particular transaction of a Texas home equity loan is a modification or a refinance for home equity purposes.
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Bill White, Chair of the Texas Finance Commission, announced on Tuesday, April 22nd that Caroline Jones has been selected as the new Commissioner of the Texas Department of Savings & Mortgage Lending. Ms. Jones appointment will be effective as of June 1st
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We wanted to take a minute to advise you of a recent decision of the Dallas Court of Appeals relating to a Texas home equity loan. In Wells Fargo Bank, N.A., as Trustee for Option One Mortgage Loan Trust 2006-1 Asset-Backed Certificates, Series 2006-1 v. Lonzie Leath, the borrower, Mr. Leath, had sought to invalidate a home equity loan on the grounds that the loan exceeded 80% of the fair market value of the property, which as you probably know is the limit imposed by Article XVI, Section 50(a)(6)(B) of the Texas Constitution.
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The case challenged the promulgated interpretative rules of the Finance Commission dealing with certain provisions of the Texas home equity lending requirements of Texas Constitution, Article XVI, Section 50, Subsections (a)(6)(E) and (a)(6)(N).
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