| (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
banker that is separate and distinct from its main office or a branch
office, whether located in Texas or not, at which the mortgage banker
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 banker 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 banker 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) with respect to a mortgage banker whose registration
under Finance Code Chapter 157 reflects it acts as a servicer of residential
mortgage loans, an office or location at which a mortgage banker or
its employees solely perform activities relating to residential mortgage
loan servicing, including:
(i) collection of the residential mortgage loan;
(ii) the administration of escrow accounts;
(iii) loss mitigation;
(iv) administering or enforcing the terms of a residential
mortgage loan; or
(v) administering the terms of an investor servicing
agreement for a residential mortgage loan; or
(D) an office or location which conducts any combination
of activities described by subparagraphs (A) - (C) of this paragraph.
(2) "Branch office" means any office a mortgage banker
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 banker 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 banker 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) with respect to a mortgage banker whose registration
under Finance Code Chapter 157 reflects it acts as a servicer of residential
mortgage loans, an office or location at which a mortgage banker or
its employees solely perform activities relating to residential mortgage
loan servicing, including:
(i) collection of the residential mortgage loan;
(ii) the administration of escrow accounts;
(iii) loss mitigation;
(iv) administering or enforcing the terms of a residential
mortgage loan; or
(v) administering the terms of an investor servicing
agreement for a residential mortgage loan;
(D) an office or location which conducts any combination
of activities described by subparagraphs (A) - (C) of this paragraph;
or
(E) a "remote location" as defined by this section.
(3) "Main office" means the office the mortgage banker
has listed in its NMLS registration (MU1 filing) as its "main address"
(principal address) under "identifying information," and is therefore
registered with the Department.
(4) "Registered office" means a physical office of
the mortgage banker that is registered with the Department as its
main office or a branch office.
(5) "Remote location" means a location other than a
registered office or an administrative office of the mortgage banker
from which the employees or sponsored originators of the mortgage
banker conduct residential mortgage loan business as provided by subsection
(c) of this section.
(b) Office Requirements. A mortgage banker must register
any office constituting the main office or a branch office of the
mortgage banker. A mortgage banker must also register any office or
location it advertises or promotes to the general public as an office
or location at which the mortgage banker's sponsored originators meet
in-person with mortgage applicants or prospective mortgage applicants.
A registered office of the mortgage banker 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 banker or mortgage
company. An 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 banker and its sponsored originators may conduct business
and work from a remote location to the same extent as if such employee
or originators were physically present at a licensed or registered
office of the mortgage banker; provided:
(1) maintains appropriate safeguards for the mortgage
banker 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 banker, 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 banker 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 registered office or administrative office of the mortgage banker.
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