Each licensee must maintain records with respect to each property
tax loan made under Texas Finance Code, Chapter 351 and Texas Tax
Code, §32.06 and §32.065, and make those records available
for examination under Texas Finance Code, §351.008. The records
required by this section may be maintained by using either a paper
or manual recordkeeping system, electronic recordkeeping system, optically
imaged recordkeeping system, or a combination of the preceding types
of systems, unless otherwise specified by statute or regulation. If
federal law requirements for record retention are different from the
provisions contained in this section, the federal law requirements
prevail only to the extent of the conflict with the provisions of
this section.
(1) Required records. A licensee must maintain the
following items:
(A) A loan register, containing the date of the property
tax loan, the last name of the borrower, the "total tax lien payment
amount" as defined in §89.601 of this title (relating to Fees
for Closing Costs), and the loan number;
(B) General business and accounting records, including
receipts, documents, canceled checks, or other records for each disbursement
made at the borrower's direction or request, or made on his behalf
or for his benefit, including foreclosure or legal fees applied to
the borrower's account;
(C) Advertising and solicitation records, including
examples of all written and electronic communications soliciting loans
(including scripts of radio and television broadcasts, and reproductions
of billboards and signs not at the licensed place of business) for
a period of not less than one year from the date of use or until the
next examination by OCCC staff, whichever is later, in order to show
compliance with Texas Finance Code, §341.403 and §351.0023;
(D) Adverse action records regarding all applications
relating to Texas Finance Code, Chapter 351 property tax loans maintained
for 25 months for consumer credit and 12 months for business credit;
and
(E) An official correspondence file, including all
communications from the OCCC, copies of correspondence and reports
addressed to the OCCC, and examination reports issued by the OCCC.
(2) Record of individual borrower's account. A separate
record must be maintained for the account of each borrower and the
record must contain at least the following information on each loan:
(A) Loan number as recorded on loan register;
(B) Loan schedule and terms itemized to show:
(i) date of loan;
(ii) number of installments;
(iii) due date of installments;
(iv) amount of each installment; and
(v) maturity date;
(C) Name, address, and telephone number of borrower;
(D) Names and addresses of co-borrowers, if any;
(E) Legal description of real property;
(F) Principal amount;
(G) Total interest charges, including the scheduled
base finance charge, points (i.e., prepaid finance charge), and per
diem interest;
(H) Amount of official fees for recording, amending,
or continuing a notice of security interest that are collected at
the time the loan is made;
(I) Individual payment entries itemized to show:
(i) date payment received (dual postings are acceptable
if date of posting is other than date of receipt);
(ii) actual amounts received for application to principal
and interest; and
(iii) actual amounts paid for default, deferment, or
other authorized charges;
(J) Any refunds of unearned charges that are required
in the event a loan is prepaid in full, including records of final
entries, and entries to substantiate that refunds due were paid to
borrowers, with refund amounts itemized to show interest charges refunded,
including the refund of any unearned points;
(K) Collection contact history, including a written
or electronic record of each contact made by a licensee with the borrower
or any other person and each contact made by the borrower with the
licensee, in connection with amounts due, with each record including
the date, method of contact, contacted party, person initiating the
contact, and a summary of the contact;
(L) Transfer, assignment, or sale records.
(3) Property tax loan transaction file. A licensee
must maintain a paper or imaged copy of a property tax loan transaction
file for each individual property tax loan or be able to produce the
same information within a reasonable amount of time. The property
tax loan transaction file must contain documents that show the licensee's
compliance with applicable law, including Texas Finance Code, Chapter
351; Texas Tax Code, §32.06 and §32.065, and any applicable
state and federal statutes and regulations. If a substantially equivalent
electronic record for any of the following documents exists, a paper
copy of the record does not have to be included in the property tax
loan transaction file if the electronic record can be accessed upon
request. The property tax loan transaction file must include copies
of the following records or documents, unless otherwise specified:
(A) For all property tax loan transactions:
(i) all lien transfer and security documents signed
by the borrowers, including any promissory note, loan agreement, deed
of trust, contract, security deed, other security instrument, or other
lien transfer document, executed in accordance with or under Texas
Tax Code, §32.06 or §32.065, or Texas Finance Code, §351.002(2)(C);
(ii) the application for credit or transfer of the
lien and any other written or recorded information used in evaluating
the application;
(iii) the disclosure statement to property owner as
required by Texas Tax Code, §32.06(a-4)(1) and §89.504 of
this title (relating to Requirements for Disclosure Statement to Property
Owner) and §89.506 of this title (relating to Disclosures), including
verification of delivery of the statement;
(iv) the sworn document authorizing transfer of tax
lien as required by Texas Tax Code, §32.06(a-1) and §89.701
of this title (relating to Sworn Document Authorizing Transfer of
Tax Lien), including written documentation to support that the sworn
document was sent by certified mail to any mortgage servicer and to
each holder of a recorded first lien encumbering the property;
(v) the certified statement of transfer of tax lien
as required by Texas Tax Code, §32.06(b) and §89.702 of
this title (relating to Certified Statement of Transfer of Tax Lien),
including information verifying the date that the certified statement
was received by the licensee from the tax assessor-collector;
(vi) a final itemization of the actual fees, points,
interest, costs, and charges that were charged at closing and to whom
the charges were paid as specified by Texas Tax Code, §32.06(e);
(vii) if available, any tax certificate or other similar
record used to determine the status of a tax account for the property
subject to the tax lien as required by Texas Tax Code, §32.06(a-2)
or authorization by property owner to pay the taxes;
(viii) copies of any other agreements, disclosures,
or affidavits signed by the borrower applicable to the property tax
loan;
(ix) receipts, invoices, or statements describing the
nature of the title defect and the work performed by an attorney,
along with proof of payment for recording costs or attorney's fees
necessary to address a defect in title, as described by §89.601(c)(5)
of this title (relating to Fees for Closing Costs), unless the records
required by this clause are maintained under paragraph (1)(B) of this
section, and upon request, the licensee produces these records within
a reasonable amount of time, and itemizes or otherwise indexes individual
entries to a particular property tax loan transaction file;
(x) written documentation of any legitimate discount
points offered to the property owner, as described by §89.601(d)
of this title, including the written proposal described by §89.601(d)(1)(C);
(B) If the property is residential property owned and
used by the property owner for personal, family, or household use,
the notice of the right of rescission as specified by Texas Tax Code,
§32.06(d-1) and Truth in Lending (Regulation Z), 12 C.F.R. §1026.23;
(C) Copies of any requests for payoff statements received
by the licensee or its agent under Texas Tax Code, §32.06(a-6)
and §89.801 of this title (relating to Requests for Payoff Statements);
copies of any requests for payoff statements received by the licensee
or its agent under Texas Tax Code, §32.06(f), (f-1), or §32.065(b-1);
and copies of any other requests for payoff statements received by
the licensee or its agent;
Cont'd... |
