Texas and New York Regulatory Update

Texas and New York Regulatory Update

The Office of Consumer Credit Commissioner (“OCCC”) issued regulations effective July 10, 2014.  The New York Department of Financial Institutions (“DFS”) extended emergency regulations related to subprime loans, effective June 22, 2014.  The DFS also extended emergency regulations regarding mortgage loan originator licensing and application requirements and servicer licensing, effective May 28, 2014.  In addition, the DFS extended emergency regulations regarding the servicing of mortgage loans, effective June 15, 2014.

 

TEXAS OFFICE OF CONSUMER CREDIT COMMISSIONER RULES

 

The amendments to 7 Texas Administrative Code Chapter 83, Subchapter A affected the following code sections: 83.101, 83.102, 83.203, 83.301 – 83.304, 83.307, 83.309 – 83.311, 83.403 – 83.405, 83.501 – 83.505, 83.601 – 83.604, 83.606, 83.701 – 83.704, 83.708, 83.751, 83.752, 83.754, 83.756, 83.757, 83.801, 83.805, 83.809, 83.828, 83.829, 83.831, 83.836, 83.837, 83.851, and 83.858.

 

Most of the changes to the regulations were not substantive, merely editorial.  There were two amendments which were substantive and may affect lenders who are licensed by the OCCC.

 

7 TAC § 83.505  Each deferment is recorded on the account and a written notice containing the conditions of the deferment must be provided to the borrower.  Now, the notice must be signed by the borrower to indicate the borrower’s agreement to the bilateral deferment.

 

7 TAC § 83.828  Each regulated lender licensee must maintain a separate file for all communications from the OCCC and for copies of correspondence and reports addressed to the OCCC.  The file must include, at a minimum, electronic or paper copies of the current Texas Finance Code, Chapter 342, the last three examination reports, correspondence relating to compliance, compliance bulletins issued in the last two years, and current rules issued by the Commissioner.  A licensee will be considered to have maintained copies of the Texas Finance Code and current rules by having access to the websites containing the official versions of the current Texas Finance Code and the current Texas Administrative Code.

 

NEW YORK EMERGENCY RULES PART 42

 

Our October 9, 2013 and January 8, 2014 Compliance Memoranda discussed an emergency regulation issued by the DFS addressing adjustments to the New York subprime home loan threshold for FHA-insured loans.  The DFS recently readopted the emergency regulation to be valid until September 17, 2014.

 

NEW YORK EMERGENCY RULES PART 418 AND SUPERVISORY PROCEDURES MB 109 AND 110

 

Our July 21, 2009, October 27, 2009, January 25, 2010, March 22, 2010, August 10, 2010, December 16, 2010, March 24, 2011, June 30, 2011, September 29, 2011, January 25, 2012, April 11, 2012, July 11, 2012, October 17, 2012, April 1, 2013, June 20, 2013, November 12, 2013, January 8, 2014, and March 24, 2014 Compliance Memoranda discussed Emergency Regulations issued by the DFS addressing mortgage loan originator licensing and application requirements and mortgage loan servicer registration and financial responsibility requirements.  The DFS recently extended all of the Emergency Regulations through August 24, 2014.

 

NEW YORK EMERGENCY RULES PART 419

 

Our August 23, 2010, December 8, 2010, March 24, 2011, May 20, 2011, August 23, 2011, November 18, 2011, January 25, 2012, May 8, 2012, August 15, 2012, December 3, 2012, January 17, 2013, May 7, 2013, July 19, 2013, November 12, 2013, January 8, 2014, and April 15, 2014 Compliance Memoranda discussed New York Emergency Regulations addressing the servicing of mortgage loans, which were effective October 1, 2010, November 1, 2010, February 1, 2011, May 2, 2011, July 22, 2011, October 20, 2011, January 17, 2012, April 17, 2012, July 12, 2012, October 7, 2012, December 13, 2012, June 26, 2013, September 15, 2013, and December 19, 2013, respectively.  The DFS recently extended the Emergency Regulations through September 10, 2014.