texas department of savings & mortgage lending · texas department of savings & mortgage...

TEXAS DEPARTMENT OF

SAVINGS & MORTGAGE

LENDING

Tony Florence

Director of Mortgage Examination

Licensing Data

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

California BRE Florida Texas SML Colorado New York

6,040

1,995

1,5521,073 867

Top Five States by # of State Licensed Mortgage EntitiesQ4 2014

0

5,000

10,000

15,000

20,000

25,000

California DBO Florida Texas SML California BRE Washington

24,906

19,72918,949 18,917

13,375

Top 5 States by # of State Licensed OriginatorsQ4 2014

0%

10%

20%

30%

40%

50%

60%

70%

1 2 3 4 5 6

68%

50%46%

34%

24%

39%

Test Attempt Number

National Test with Uniform State ContentApril 1, 2013 to February 28, 2015

Pass Rate

0

50

100

150

200

250

300

2 3-5 6-10 11-20 21+

8882

92

120

251

6278

96 102

239

# o

f E

nti

ties

# of Licenses Held by Entity

Entity State Licenses Held (Texas Licensed Entities)

Q4 2014

2014

2013

* Out of 1,552 Texas-licensed entities, 919 were licensed only in Texas (60%)

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

2 3-5 6-10 11-20 21+

834

1316

2126

4718

2119

666

1212

2095

3286

1672

# o

f L

oan

Ori

gin

ato

rs

# of State Licenses Held by Loan Originator

Originator Licenses Held (Texas Licensed Originators)

Q4 2014

2014

2013

* Out of 18,949 Texas-licensed originators, 7,836 were only licensed in Texas (41%)

Historical Individual Licensee Population

March 1, 2015 16,723

September 2014 17,617






Peak in 2005 at over 30,000

Mortgage Examination Data

Examination Data

• Fiscal Year 2014

Examinations completed 366

Licensees covered by exams 3,240







Most Cited Exam Violations

• Failure to deliver a properly executed TX Mortgage

Company / TX Mortgage Banker Disclosure

TAC 80.200(a) Mortgage Company Originators

TAC 81.200(a) Mortgage Banker Originators

Originator name and NMLS number missing

Using a non-standard or outdated form

Delivery information

Most Cited Exam Violations (continued)

• Unlicensed / Unauthorized Activity

Individual begins originating loans prior to license application being

approved

RMLO continues to originate after license expired

RMLO originates loans with an inactive license

Most Cited Exam Violations

(continued)• Issuance of Incomplete Qualification or Approval Letters

TAC 80.201 (Form A & B)

TAC 81.201 (Form A & B)

Conditional Qualification or Approval Letters

Originator Data (NMLS, Address, Phone)

Loan Data (Loan Amount, Rate, Term, LTV)

Application & Verification Data (Credit, Income, Down

Payment, Etc…)

Most Cited Exam Violations (continued)

• Advertising

RMLO’s NMLS ID missing on business cards or website

Website does not display the Complaint/Recovery Notice

Social Media (Facebook) including advertisements but not including

requirements (NMLS ID and Complaint /Recovery Fund Notice)

Advertising does not have physical address

Social Media Best Practices

• Establish a Social Media Policy

Define what type of content is acceptable and unacceptable

Implement an approval process for establishing social media

accounts

Conduct regular employee training

Establish repercussions for violating the policy

Establish monitoring procedures

Consumer Complaints

0

100

200

300

400

500

600

700

800

900

1000

2008 2009 2010 2011 2012 2013 2014

825

959

802

671715

988

929

Fiscal Year

Consumer Complaints Received

Loan Servicing Issues

61%

Misleading Practices

15%

Loan Modification Issues

11%

Unlicensed Activities

5%

Fraud - Consumer

Reported

2%

Improper Advertising

1%Thrift

1%Customer Relations Issues

1%

All Other *

3%

Total Complaints Received in Fiscal Year 2014 = 929

* The "All Other" Category includes: Refunds and File Transfers, Fraud-Industry Referral, Bait and Switch, Failure to Pay

Appraisers/Vendors, Permissible Charges/Fees, Inadequate Disclosures, and Identity Theft.

Nature of Complaints Received - Fiscal Year 2014(Complaints Received 09-01-2013 to 08-31-2014)

Mortgage Servicer

37%

Mortgage Banker

33%

Mortgage Company

11%

No Jurisdiction

10%

Not Licensed

8%

State Savings Bank

1%

Independent Contractor

Processor/Underwriter

Company

(1 complaint)

Total Complaints Received in Fiscal Year 2014 = 929

Respondent License Types - Complaints Received in Fiscal Year 2014(Complaints Received 09-01-2013 to 08-31-2014)

Insufficient Evidence

38%

No Jurisdiction ^

34%

Parties Resolved Issue

19%

Referred to Enforcement

4%

Advisory Letter

1%

Referred to Attorney

General

1%

Complaint Withdrawn

1%

Other *

2%

Total complaints resolved in Fiscal Year 2014 = 973

^ The "No Jurisdiction" category includes: complaint against exempt entities/individuals (No Jurisdiction-Exempt), complaints

regarding issues outside the Department's authority (No Jurisdiction Over Issue), and complaints against entities/individuals with

expired licenses (No Jurisdiction-License Expired).

* The "Other" category includes: Consolidated with Another File, Opened in Error, Information Only, No Investigation, and Failure

to go Forward

Disposition of Resolved Complaints - Fiscal Year 2014(Complaints Resolved Between 09-01-2013 and 08-31-2014)

0%

10%

20%

30%

40%

50%

60%

70%

80%

On 8/31/14 On 8/31/13 On 8/31/12 On 08/31/11 On 8/31/10 On 8/31/09

96% 84%

76%

66%

70% 73%

4%

16%

24%

34%30%

27%

0%0% 0% 0% 0% 0%

% o

f To

tal O

pen

Co

mp

lain

ts

File Age (Days Open)

Complaint File Aging

0-90 91-180 181-365

(Expressed as a percentage of all open complaints on the specified date)

Loan Servicing Issues

57%

Misleading Practices

16%

Loan Modification Issues

11%

Improper Advertising

7%

Unlicensed Activities

4%

Fraud - Consumer

Reported

2%

Refunds and File Transfers

1%

Permissible Charges/Fees

1%

Bait and Switch

1%

Total Open Complaints as of 08-31-2014 = 84

Nature of Open Complaints as of 08/31/2014

Questions?

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