| (a) Purpose. This section clarifies and establishes
requirements related to the wrap lender's requirement to maintain
information and records necessary to facilitate the Commissioner's
inspection of a wrap lender required to register as a residential
mortgage loan servicer under Finance Code Chapter 158, as provided
by Finance Code §159.252(d)(1). The requirements of this section
are in addition to and supplement the requirements a wrap lender registrant
or other person is required to maintain as a licensee or registrant
under Finance Code Chapters 156, 157, 158, or 342, as applicable.
(b) Maintenance of Records, Generally. Each wrap lender
registrant must maintain records with respect to each wrap mortgage
loan under Finance Code Chapter 159 and make those records available
for examination under Finance Code §159.252. The records required
by this section may be maintained using a paper, manual, electronic,
or digitally-imaged recordkeeping system, or a combination thereof,
unless otherwise specified by other applicable law. The records must
be accurate, complete, current, legible, and readily accessible and
sortable. If the requirements of other applicable law governing recordkeeping
by the wrap loan registrant differ from the requirements of this section,
such other applicable law prevails only to extent this section conflicts
with the requirements of this section.
(c) Required Records. A wrap lender registrant must
maintain the following items:
(1) Wrap Mortgage Servicing Log. A wrap mortgage servicing
log for each wrap mortgage loan serviced by a wrap lender registrant,
maintained on a current basis (which means that all entries must be
made within seven days from the date on which the matters they relate
to occurred), setting forth, at a minimum:
(A) the loan or account number, or other unique identifier
assigned by the wrap lender registrant to the wrap mortgage loan;
(B) the name and contact information of each wrap borrower;
and
(C) the date the wrap mortgage loan was entered into
by the wrap lender and wrap borrower.
(2) Wrap Borrower Index. The current alphabetical index
or a report of outstanding wrap mortgage loans of the wrap lender
registrant, regardless of whether or not it services the wrap mortgage
loan, reflecting the name of each wrap borrower and the loan or account
number, or other unique identifier assigned by the wrap lender to
the wrap mortgage loan. A wrap lender registrant may maintain the
wrap borrower index as a part of other records maintained by the wrap
lender registrant; provided, the wrap lender registrant is able to
sort, generate, and print, as a separate record, the wrap borrower
index in strict alphabetical order.
(3) Wrap Mortgage Transaction File. A wrap lender registrant
must maintain a wrap mortgage transaction file for each wrap mortgage
loan or be able to produce the same information within a reasonable
time upon request. The wrap mortgage transaction file must contain
documents demonstrating the wrap lender registrant's compliance with
applicable law, including Finance Code Chapter 159, and any applicable
state and federal statutes, rules, or regulations. The wrap mortgage
loan transaction file must include the following records or documents:
(A) for all wrap mortgage loan transactions:
(i) the promissory note, loan agreement, or repayment
agreement, signed by the wrap borrower(s);
(ii) the recorded deed of trust, contract, security
deed, security instrument, or other lien transfer document signed
by the wrap borrower(s);
(iii) the title insurance policy or abstract of title;
(iv) the initial and final mortgage application (including
any attachments, supplements, or addenda thereto), signed and dated
by the mortgage applicant and the residential mortgage loan originator,
and any other written or recorded information used to evaluate the
mortgage application, as required by Regulation B, 12 C.F.R. §1002.4(c);
(v) the real estate contract documenting the sale of
the residential real estate securing the wrap mortgage loan;
(vi) the disclosure statement requirement by Finance
Code §159.101 and §78.101 of this title (relating to Required
Disclosure), including any foreign-language disclosure required by
Finance Code §159.102;
(vii) the initial and any revised integrated loan estimate
disclosure required by Regulation Z - Truth-in-Lending, 12 C.F.R. §1026.37;
(viii) the initial, revised, and final closing disclosure
as required by Regulation Z - Truth-in-Lending, 12 C.F.R. §1026.38;
(ix) any rate lock agreements, or similar document;
(x) the records relating to the ability-to-repay the
wrap mortgage loan required by Regulation Z, 12 C.F.R. §1026.25
and §1026.43;
(xi) copies of any appraisal reports or written valuation
reports used to determine the value of the residential real estate;
(xii) the privacy notice required by Regulation P,
12 C.F.R. §1016.5; and
(xiii) the wrap borrower's authorization and consent
to receive electronic documents as required by the E-sign Act and
Regulation Z - Truth-in-Lending, 12 C.F.R. §1026.17(a)(1);
(B) with respect to servicing the wrap mortgage loan,
the following additional records are required to be maintained:
(i) any payoff requests received from the wrap borrower,
agent of the wrap borrower, another lender, or a title company;
(ii) any payoff statements issued to the wrap borrower,
agent of the wrap borrower, another lender, or a title company;
(iii) if the wrap mortgage loan is paid off or otherwise
satisfied, a copy of the release of lien;
(iv) receipts or invoices along with proof of payment
for any attorneys' fees assessed, charged, or collected in the collection
of a delinquent wrap mortgage loan;
(v) if collateral protection insurance is acquired
or purchased, a copy of the insurance policy or certificate of insurance
and the notice required by Finance Code §307.052;
(vi) any periodic statements or billing invoices sent
to the wrap borrower;
(vii) copies of any collection letters or notices sent
by the wrap lender registrant or its agent to the wrap borrower;
(viii) any modification, reinstatement, or settlement
agreement that is proposed or entered into between the wrap borrower
and the wrap lender registrant;
(ix) any records related to a consumer inquiry, complaint,
or error resolution;
(x) any records or documents relating to a request
for protection under the Servicemembers Civil Relief Act, 50 U.S.C. §3901
et seq.; and
(xi) any other servicing notice, disclosure, or record
required by federal or state law;
(C) for wrap mortgage loan transactions involving a
foreclosure or attempted foreclosure, the following records:
(i) for transactions involving judicial foreclosure:
(I) any records pertaining to a judicial foreclosure
including records from the wrap lender registrant's attorneys, the
court, or the wrap borrower or the wrap borrower's agent;
(II) any notice to cure the default sent to the wrap
borrower and each superior lienholder as required by Texas Property
Code §51.002(d), including verification of delivery of the notice;
(III) any notice of intent to accelerate sent to the
wrap borrower and each superior lienholder, including verification
of delivery of the notice;
(IV) any notice of acceleration sent to the wrap borrower
and each superior lienholder; and
(V) any records related to receipt of the foreclosure
proceeds;
(ii) for transactions involving non-judicial foreclosure:
(I) the notice to cure the default sent to the wrap
borrower and each superior lienholder as required by Texas Property
Code §51.002(d), including verification of delivery of the notice;
(II) the notice of intent to accelerate sent to the
wrap borrower and each superior lienholder, including verification
of delivery of the notice;
(III) the notice of acceleration sent to the wrap borrower
and each superior lienholder;
(IV) the notice of sale required by Texas Property
Code §51.002(b) including verification of delivery of the notice;
(V) any records related to the foreclosure sale by
the trustee including the person purchasing the property, and the
dollar amount of the proceeds received from the foreclosure sale;
(VI) any records related to a short sale, deed-in-lieu
of foreclosure, or similar disposition;
Cont'd... |
