The Finance Commission of Texas
The Finance Commission of Texas oversees financial agencies, appointing the Consumer Credit Commissioner who licenses lenders.
Applying for a License
To apply for a license, create an account on ALECS, submit an application, and pay fees. The review process for applications takes 60 days. An individual who takes loan applications for compensation is known as a regulated mortgage loan originator (RMLO). There are two agencies in Texas that issue these licenses; another regulates secondary and home equity loans.
Regulation of Interest Rates
Lenders assess borrowers’ ability to repay using various metrics. Regulated loans are those with interest rates above 10%, and they adhere to Chapter 342 of the Texas Finance Code.
Local Government Regulation
City and local governments have authority over payday lenders and have instituted credit access business regulations.
Banks and Hard Money Lenders
Banks are regulated by the Texas Department of Banking, with consumer protection guidelines stated in the Banking Code of Texas. Hard money lenders offer commercial loans for land and income property acquisition, and even when they are not licensed, regulations are in place to protect borrowers.
To file a complaint against a lender in Texas, visit www.consumerfinance.gov/complaint or call the consumer hotline at 877-276-5550. Complaints, specifically about mortgage servicing, should be directed to the Department of Savings and Mortgage Lending at 2601 North Lamar, Suite 201, Austin, TX 78705.
Mortgage industry regulation in Texas is under the purview of multiple agencies, with the Finance Commission of Texas being the overarching authority for financial oversight. They grant licenses for various types of lenders and enforce regulatory frameworks to ensure consumer protection.