Tex. Fin. Code Section 156.301
Inspections; Investigations


(a)

The commissioner may conduct inspections of a person licensed under this chapter or a residential mortgage loan originator who is licensed under Chapter 157 (Mortgage Bankers and Residential Mortgage Loan Originators) and sponsored by and conducting business for a licensed or registered residential mortgage loan company under this chapter as the commissioner determines necessary to determine whether the person or the residential mortgage loan originator is complying with this chapter and applicable rules. The inspections may include inspection of the books, records, documents, operations, and facilities of the person or the residential mortgage loan originator and access to any documents required under rules adopted under this chapter. The commissioner may share evidence of criminal activity gathered during an inspection or investigation with any state or federal law enforcement agency.

(b)

On the signed written complaint of a person, the commissioner shall investigate the actions and records of a person licensed under this chapter or a residential mortgage loan originator who is licensed under Chapter 157 (Mortgage Bankers and Residential Mortgage Loan Originators) and sponsored by and conducting business for a licensed or registered residential mortgage loan company under this chapter if the complaint, or the complaint and documentary or other evidence presented in connection with the complaint, provides reasonable cause. The commissioner, before commencing an investigation, shall notify the residential mortgage loan company or the residential mortgage loan originator in writing of the complaint and that the commissioner intends to investigate the matter.

(c)

For reasonable cause, the commissioner at any time may investigate a person licensed under this chapter or a residential mortgage loan originator who is licensed under Chapter 157 (Mortgage Bankers and Residential Mortgage Loan Originators) and sponsored by and conducting business for a licensed or registered residential mortgage loan company under this chapter to determine whether the person or the residential mortgage loan originator is complying with this chapter and applicable rules.

(d)

The commissioner may conduct an undercover or covert investigation only if the commissioner, after due consideration of the circumstances, determines that the investigation is necessary to prevent immediate harm and to carry out the purposes of this chapter.

(e)

The finance commission by rule shall provide guidelines to govern an inspection or an investigation, including rules to:

(1)

determine the information and records to which the commissioner may demand access during an inspection or an investigation; and

(2)

establish what constitutes reasonable cause for an investigation.

(f)

Information obtained by the commissioner during an inspection or an investigation is confidential unless disclosure of the information is permitted or required by other law.

(g)

The commissioner may share information gathered during an investigation or inspection with any state or federal agency.

(h)

The commissioner may require reimbursement of expenses for each examiner for on-site examination or investigation of a license holder if records are located out of state or if the review is considered necessary beyond the routine examination process. The finance commission by rule shall set the maximum amount for the reimbursement of expenses authorized under this subsection.
Added by Acts 1999, 76th Leg., ch. 1254, Sec. 2, eff. Sept. 1, 1999. Amended by Acts 2001, 77th Leg., ch. 337, Sec. 10, eff. Sept. 1, 2001.
Amended by:
Acts 2005, 79th Leg., Ch. 1018 (H.B. 955), Sec. 6.13, eff. September 1, 2005.
Acts 2009, 81st Leg., R.S., Ch. 1317 (H.B. 2774), Sec. 15, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 655 (S.B. 1124), Sec. 30, eff. September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 160 (S.B. 1004), Sec. 33, eff. September 1, 2013.

Source: Section 156.301 — Inspections; Investigations, https://statutes.­capitol.­texas.­gov/Docs/FI/htm/FI.­156.­htm#156.­301 (accessed Mar. 23, 2024).

156.001
Short Title
156.002
Definitions
156.003
Secondary Market Transactions
156.004
Disclosure to Applicant
156.005
Affiliated Business Arrangements
156.101
Administration and Enforcement of Chapter
156.102
Rulemaking Authority
156.103
Powers of Commissioner
156.104
Mortgage Industry Advisory Committee
156.105
Standard Forms
156.201
Licenses Required
156.202
Exemptions
156.203
Application
156.206
Criminal and Other Background Checks
156.207
Issuance of License
156.208
Renewals
156.209
Denial of Applications and Renewals
156.210
Conditional License
156.211
Change of Address or Sponsorship
156.212
Maintenance and Location of Offices
156.213
Mortgage Call Report
156.301
Inspections
156.302
Administrative Penalty
156.303
Disciplinary Action
156.304
Fee Assessment and Disclosure
156.305
Restitution
156.401
Hearings and Judicial Review
156.402
Civil Actions and Injunctive Relief
156.403
Burden of Proof to Establish an Exemption
156.404
Reliance on Written Notices from Commissioner
156.406
Unlicensed Activity
156.501
Recovery Fund
156.502
Funding
156.503
Statute of Limitations
156.504
Procedure for Recovery
156.505
Recovery Limits
156.506
Revocation or Suspension of License for Payment from Recovery Fund
156.507
Subrogation
156.508
Failure to Comply with Subchapter or Rule Adopted by the Finance Commission
156.551
Mortgage Grant Fund
156.552
Funding
156.553
Management of Fund
156.554
Disbursement from Fund
156.555
Payment of Claims for Fraudulent Unlicensed Activity
156.556
Rules
156.2012
Registered Financial Services Company
156.2041
Qualifications and Requirements for License: Mortgage Company
156.2042
Qualifications and Requirements for License: Credit Union Subsidiary Organization
156.2043
Qualifications and Requirements for License: Auxiliary Mortgage Loan Activity Company
156.2044
Qualifications and Requirements for License: Independent Contractor Loan Processor or Underwriter Company
156.2046
Conviction of Offense
156.2081
Reinstatement After Expiration
156.3011
Issuance and Enforcement of Subpoena

Accessed:
Mar. 23, 2024

§ 156.301’s source at texas​.gov