(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
company that is separate and distinct from its main office or a branch
office, whether located in Texas or not, at which the mortgage company
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 company 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 company 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); or
(C) an office or location which conducts any combination
of activities described by subparagraphs (A) or (B) of this paragraph.
(2) "Branch office" means any office a mortgage company
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 company 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 company 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) an office or location which conducts any combination
of the activities described by subparagraphs (A) and (B) of this paragraph;
or
(D) a "remote location" as defined by this section.
(3) "Licensed office" means a physical office of the
mortgage company that is licensed by the Department as its main office
or a branch office.
(4) "Main office" means the office the mortgage company
has listed in its NMLS license records (MU1 filing) as its "main address"
(principal address) under "identifying information," and is therefore
licensed by the Department through the mortgage company's license.
(5) "Remote location" means a location other than a
licensed office or an administrative office of the mortgage company
from which the employees or sponsored originators of the mortgage
company conduct residential mortgage loan business as provided by
subsection (c) of this section.
(b) Office Requirements. A mortgage company must obtain
a license for any office constituting the main office or a branch
office of the mortgage company. A mortgage company must also obtain
a license for any office or location it advertises or promotes to
the general public as an office or location at which the mortgage
company's sponsored originators meet in-person with mortgage applicants
or prospective mortgage applicants. A licensed office of the mortgage
company 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 company. A sponsored 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 company and its sponsored originators may conduct business
and work from a remote location to the same extent as if such employees
or originators were physically present at a licensed office of the
mortgage company; provided, the mortgage company:
(1) maintains appropriate safeguards for the mortgage
company 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 company, 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 company 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 licensed office or administrative office of the mortgage company.
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