(a) Generally. Records and accounting systems maintained
in whole or in part by electronic systems must contain the equivalent
information as required in §83.828 and §83.829 of this title
(relating to Files and Records Required (Subchapter E and F Lenders)
and Files and Records Required (Subchapter G Lenders)).
(b) Software review for Chapter 342, Subchapter E or
F licensees. A licensee making, transacting, or negotiating consumer
loans subject to Texas Finance Code, Chapter 342, Subchapter E or
F must use a reviewed software system unless the licensee utilizes
either a manual recordkeeping system that complies with §83.828
of this title or a proprietary software system that is not sold or
distributed to other licensees, unless the other licensees are affiliates
of the licensee operating the proprietary system. A list of reviewed
non-proprietary software systems that may be used by licensees will
be maintained on the OCCC's website. A licensee or software vendor
must provide documentation of the non-proprietary software system
to the OCCC that explains how the required information is maintained
within the system.
(c) Software review for Chapter 342, Subchapter G licensees.
A licensee making, transacting, or negotiating secondary mortgage
loans subject to Texas Finance Code, Chapter 342, Subchapter G will
not have to submit its electronic recordkeeping system for review.
(d) Non-proprietary software system documentation.
(1) Required information. A licensee or software vendor
seeking a review of a non-proprietary software system must make available
a complete and detailed written description of the system proposed
to be utilized, including:
(A) a statement specifying whether the system will
be used in its entirety;
(B) operating manuals;
(C) instructions;
(D) a copy of the software to be used; and
(E) a full description of backup systems in place that
will ensure business continuity and the protection of the data.
(2) Amendments. Any amendment or change to a non-proprietary
software system is required to meet the minimum reporting requirements
as established by this section.
(3) Responsibility for filing non-proprietary software
system. A non-proprietary software vendor may make a filing on behalf
of a licensee; however, it is the licensee's responsibility to ensure
that the non-proprietary software system was reviewed prior to utilizing
the system.
(e) Compliance. If an examination of the system demonstrates
that the required records are not being maintained appropriately,
the commissioner may disapprove the use of the system. A licensee
will have 90 days to bring the electronic system into compliance.
(f) Optical imaging systems. Records may be retained
and stored using optical image storage media, provided the following
requirements are satisfied:
(1) The optical image storage must be nonerasable "write
once, read many" ("WORM") that does not allow changes to the stored
document or record;
(2) The stored document or record is made or preserved
as part of and in the regular course of business;
(3) The custodian of the record is able to identify
the stored document or record, the mode of its preparation, and the
mode of storing it on the optical image storage system;
(4) The optical image storage system contains a reliable
indexing system that provides ready access to a desired document or
record, appropriate quality control of the storage process to ensure
the quality of imaged documents or records, and date-ordered arrangement
of stored documents or records to assure a consistent and logical
flow of paperwork to preclude unnecessary search time;
(5) The original documents must be maintained for one
year after the date of the loan. If a licensee assigns loans to another
authorized lender and no longer services the loans, the licensee who
sold the loans to another lender is no longer required to maintain
the original documents for the transferred loans; however, the licensee
must either maintain photocopies of the original form documents for
one year or enter into an agreement with the authorized lender acquiring
the loans to provide access to the original form documents for a period
of one year. The optical imaged records must be maintained for the
entire required retention period; and
(6) A licensee must maintain at the licensee's office
a method of viewing documents or records stored pursuant to this section.
A licensee must provide a hard copy of any document or record requested
by the OCCC.
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Source Note: The provisions of this §83.831 adopted to be effective November 9, 2006, 31 TexReg 9006; amended to be effective November 4, 2010, 35 TexReg 9698; amended to be effective May 5, 2011, 36 TexReg 2725; amended to be effective July 10, 2014, 39 TexReg 5142 |