| (a) Scope. This section governs the administration
of and disbursements from the fund (each of which is considered a
grant disbursement) for purposes of:
(1) Finance Code §156.554(b)(1), concerning grants
to an auxiliary mortgage loan activity company or another nonprofit
organization to promote financial education relating to mortgage loans;
and
(2) Finance Code §156.554(b)(3), concerning disbursements
to provide support for statewide financial education, activities,
and programs specifically related to mortgage loans for consumers,
or for the purposes provided by Finance Code §393.628(c).
(b) Grant Cycle. The fund may have one competitive
grant cycle every two years.
(1) Funding Determination. The grant funding determination
is made by the Commissioner by December 31 of each even-numbered year.
The Commissioner will determine the separate funding available and
allocated to each of the purposes of Finance Code §156.554(b)(1)
and (3).
(2) Programming Cycle. A new fund grant programming
cycle may open on January 1 of every odd-numbered year. An applicant
may choose to apply for a one-year grant programming cycle, or a two-year
grant programming cycle. The grant programming cycle for a one-year
grantee begins on January 1 and ends on December 31 of the odd-numbered
year for the applicable cycle. The grant programming cycle for a two-year
grantee begins on January 1 of the odd-numbered year and ends on December
31 of the following even-numbered year for the applicable cycle.
(c) Eligibility. A grant made under Finance Code §156.554(b)(1)
and subsection (a)(1) of this section may only be given to a company
licensed by the Department as an auxiliary mortgage loan activity
company, or a nonprofit organization. A grant made under Finance Code §156.554(b)(3)
and subsection (a)(2) of this section may be given to a nonprofit
organization, school, or for-profit entity. Grant funding is not available
to entities licensed or registered by the Department other than auxiliary
mortgage loan activity companies in accordance with Finance Code §156.554(b)(1)
and subsection (a)(1) of this section.
(d) Grant Application. To be considered for the grant
program, an applicant must complete and submit the grant application
by the deadline and in accordance with the instructions for the applicable
grant cycle. Late or incomplete grant applications will not be accepted.
Meeting eligibility criteria and timely submission of a grant application
does not guarantee award of a grant in any amount.
(e) Review and Approval. The Commissioner, upon receipt
of advice from MGAC and the Grant Coordinator, will review timely
and complete applications and determine the grants to be awarded.
(f) Grant Agreement. To participate in the grant program,
a grantee approved by the Commissioner to receive a grant must execute
the grant agreement approved by the Commissioner for the applicable
grant cycle (grant agreement).
(g) Grantee Compliance. A grantee must comply with
applicable financial, administrative, and programmatic terms and conditions,
and exercise proper stewardship over grant program funds. A grantee
must use awarded funds in compliance with the following in effect
for the applicable grant cycle:
(1) all applicable state laws and regulations;
(2) all applicable federal laws and regulations;
(3) the Mortgage Grant Administration Manual;
(4) the grant application, including all application
guidelines and instructions at the time of application;
(5) the grant agreement signed by the Commissioner
or the Commissioner's designee and the grantee;
(6) all reporting and monitoring requirements, as outlined
in the grant agreement; and
(7) any other guidance documents posted on the Mortgage
Grant Fund website for the applicable grant cycle.
(h) Reporting and Monitoring.
(1) General reporting requirements. To receive reimbursement
of grant expenses a grantee must:
(A) submit periodic grant reports as provided by the
grant agreement;
(B) maintain satisfactory compliance with the grant
agreement and the grant activities as proposed by the grantee in its
grant application;
(C) identify, track and report performance measures;
and
(D) track and report participant demographic information.
(2) Progress Reports. A grantee must submit progress
reports that demonstrate performance outcomes and financial information
over the term of the grant in accordance with and by the deadlines
set forth in the grant agreement.
(3) Six-month Longitudinal Report. A grantee must submit
a six-month longitudinal report after program completion to demonstrate
program objectives.
(4) Monitoring. The Grant Coordinator or MGAC may use
the following methods to monitor a grantee's performance and expenditures:
(A) Desk Review. The Grant Coordinator or MGAC may
conduct a desk review of a grantee to review and compare individual
source documentation and materials to summary data provided during
the reporting process; or
(B) Site Visits and Inspection Reviews. The Grant Coordinator
or MGAC may conduct a scheduled site visit to a grantee's place of
business to review compliance and performance issues. Site visits
may be comprehensive or limited in scope.
(i) Reimbursement.
(1) Eligibility. To be eligible for reimbursement,
a grantee must comply with all terms of the grant agreement, as well
as all other items provided in subsection (g) of this section. To
ensure that grant funds are used for a public purpose as provided
by Finance Code §156.556(1), grant funds will only be awarded
on a cost reimbursement basis for all actual, allowable, and allocable
costs incurred by a grantee pursuant to the grant agreement. Expenses
that were incurred before the beginning or after termination of the
grant agreement are not eligible for reimbursement.
(2) Procedure. To request reimbursement for work performed
on grant activities, a grantee must submit a grant reimbursement report
in accordance with and by the deadlines set forth in the grant agreement.
A grantee must submit a detailed expense report with supporting documentation
to justify the reimbursement request. The Department will review and
approve requests for reimbursement that satisfy the requirements and
promptly disburse funds in response to approved requests.
(j) Misuse of Grant Funds. The Commissioner may require
a refund of grant funds already disbursed to the grantee and may cancel
the grant agreement or disqualify the grantee from receiving future
grants from the fund if:
(1) grant funds are not used for a public purpose allowable
under Finance Code §156.554;
(2) grant funds are used in an illegal manner;
(3) the grantee violates the terms or conditions of
the grant agreement or otherwise violates the requirements of subsection
(g) of this section; or
(4) the Commissioner discovers the grantee made any
material misrepresentations in obtaining the grant or in seeking reimbursement
of grant funds.
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