| (iv) any other notice or disclosure required by RESPA
or Regulation X;
(E) Equal Credit Opportunity Act - Transactions Not
Resulting in Approval. For residential mortgage loan applications
where a notice of incompleteness is issued, a counteroffer is made,
or adverse action is taken, as provided by Regulation B (12 C.F.R. §1002.1
et seq.), the following records, as applicable:
(i) the notice of incompleteness required by Regulation
B, 12 C.F.R. §1002.9(c)(2);
(ii) the counteroffer letter sent to the mortgage applicant
in accordance with Regulation B, 12 C.F.R. §1002.9; and
(iii) the adverse action notification (a/k/a turndown
letter) required by Regulation B, 12 C.F.R. §1002.9(a);
(F) Home Equity Transactions. For home equity loan
or home equity line of credit transactions, the following records
(references in this subparagraph to Section 50 refers to Article XVI,
Section 50, Texas Constitution):
(i) the preclosing disclosures required by Section
50(a)(6)(M)(ii) and §153.13 of this title (relating to Preclosing
Disclosures: Section 50(a)(6)(M)(ii); as provided by such section,
the closing disclosure or account-opening disclosures required by
Regulation Z fulfills this requirement);
(ii) the consumer disclosure required by Section 50(g)
and §153.51 of this tile (relating to Consumer Disclosure: Section
50(g));
(iii) if an attorney-in-fact executes the closing documents
on behalf of the owner or owner's spouse, a copy of the executed power
of attorney and any other documents evidencing execution of such power
of attorney at the permanent physical address of an office of the
lender, an attorney at law, or a title company, as required by §153.15
of this title (relating to Location of Closing: Section 50(a)(6)(N));
(iv) if the borrower (mortgage applicant) uses the
proceeds of the loan to pay off a non-homestead debt with the same
lender, a written statement, signed by the mortgage applicant, indicating
the proceeds of the home equity loan were voluntarily used to pay
such debt (see Section 50(a)(6)(Q)(i));
(v) notice of the right of rescission, as required
by Section 50(a)(6)(Q)(viii) (as provided by §153.25 of this
title (relating to Right of Rescission: Section 50(a)(6)(Q)(viii)),
the notice of right of rescission required by TILA and Regulation
Z fulfills this requirement);
(vi) the written acknowledgement as to the fair market
value of the homestead property, as required by Section 50(a)(6)(Q)(ix)
and §153.26 of this title (relating to Acknowledgement of Fair
Market Value: Section 50(a)(6)(Q)(ix)); and
(vii) if the home equity loan is refinanced into a
non-home equity loan, the Texas Notice Concerning Refinance of Existing
Home Equity to Non-Home Equity Loan, as required by Section 50(f)(2)(D)
and §153.45 of this title (relating to Refinance of an Equity
Loan: Section 50(f));
(G) Wrap Mortgage Loans. For wrap mortgage loan transactions
subject to the requirements of Finance Code Chapter 159, the following
records:
(i) the disclosure statement required by Finance Code §159.101
and §78.101 of this title (relating to Required Disclosure),
signed and dated by each mortgage applicant, and any foreign language
disclosure statement required by Finance Code §159.102;
(ii) the disclosure statement required by Tex. Prop.
Code §5.016 provided to each existing lienholder (the disclosure
statement required by Finance Code §159.101 and §78.101
of this title (relating to Required Disclosure) referenced in clause
(i) of this subparagraph fulfills this requirement if it was provided
to each existing lienholder); and
(iii) documents evidencing that the wrap mortgage loan
was closed by an attorney or a title company, as required by Finance
Code §159.105;
(H) Home Improvement Loans. For home improvement transactions
(including repair, renovation, and new construction), the following
records:
(i) the mechanic's lien contract;
(ii) documents evidencing the transfer of lien from
the contractor to the lender;
(iii) the residential construction contract;
(iv) notice of the right of rescission required by
Article XVI, Section 50(a)(5)(C), Texas Constitution (the notice of
right of rescission required by TILA and Regulation Z fulfills this
requirement); and
(v) any other notice or disclosure required by Texas
Property Code Chapter 53;
(I) Reverse Mortgages. For reverse mortgage transactions,
the following records:
(i) the disclosure required by Article XVI, Section
50(k)(9), Texas Constitution;
(ii) the certificate of counseling required by Article
XVI, Section 50(k)(8), Texas Constitution;
(iii) the servicing disclosure statement required by
Regulation X, 12 C.F.R. §1024.33(a);
(iv) the disclosures required by Regulation Z, 12 C.F.R. §1026.33(b);
and
(v) any other notice or disclosure required by federal
or state law to originate a reverse mortgage;
(3) Other Records Required by Federal Law. An originator
must maintain such other books and records as may be required to evidence
compliance with applicable federal laws and regulations, including,
but not limited to:
(A) the Fair Credit Reporting Act (15 U.S.C. §1681
et seq.) and Regulation V (12 C.F.R. §1022.1 et seq.);
(B) the Gramm-Leach-Bliley Act (15 U.S.C. §6801
et seq.) and Regulation P (12 C.F.R. §1016.1 et seq.), and the
regulations of the Federal Trade Commission (16 C.F.R. §313.1
et seq.);
(C) the Secure and Fair Enforcement for Mortgage Licensing
Act (12 U.S.C. §5101 et seq.) and Regulation H (12 C.F.R. §1008.1
et seq.); and
(D) Regulation N (Mortgage Acts and Practices-Advertising
(MAP Rule); 12 C.F.R. §1014.1 et seq.); and
(4) Other Records of an Originator Designated by the
Commissioner. An originator must maintain such other books and records
as the Commissioner or the Commissioner's designee may, from time
to time, specify in writing.
(c) Required Records of a Mortgage Banker. A mortgage
banker must maintain the following records:
(1) General Business Records. General business records
include:
(A) all checkbooks, check registers, bank statements,
deposit slips, withdrawal slips, and cancelled checks (or copies thereof)
relating to residential mortgage loan origination business;
(B) complete records (including invoices and supporting
documentation) for all expenses and fees paid on behalf of a mortgage
applicant, including a record of the date and amount of all such payments
actually made by each mortgage applicant;
(C) all federal tax withholding forms, reports of income
for federal taxation, and evidence of payments to all employees of
the mortgage banker, independent contractors, and all others compensated
by the mortgage banker in connection with residential mortgage loan
origination business;
(D) all written complaints or inquiries (or summaries
of any verbal complaints or inquiries) along with any correspondence,
notes, responses, and documentation relating thereto and the disposition
thereof;
(E) all contractual agreements or understandings with
third parties in any way relating to a residential mortgage loan transaction
including, but not limited to, any delegations of underwriting authority,
any agreements for pricing of goods or services, investor contracts,
or employment agreements;
(F) all reports of audits, examinations, inspections,
reviews, investigations, or similar, performed by any third party,
including any regulatory or supervisory authorities;
(G) all advertisements in the medium (e.g., recorded
audio, video, Internet or social media site posting, or print) in
which they were published or distributed; and
(H) policies and procedures related to the origination
of residential mortgage loans by the mortgage banker and its sponsored
originators, including, but not limited to:
(i) identity theft prevention program (red flags rule;
16 C.F.R. §681.1(d));
(ii) anti-money laundering program (31 C.F.R. §1029.210);
(iii) information security program (16 C.F.R. §314.3(a));
(iv) ability-to-repay underwriting policies, if any
(Regulation Z, 12 C.F.R. §1026.43(c));
(v) quality control policy, if any;
(vi) compliance manual, if any; and
Cont'd... |
