ARTICLE SECTION

Effective November 4, 2021, the Department of Savings and Mortgage Lending adopted new rules (regulations) to provide clear guidance concerning authorization for the employees and sponsored originators of a mortgage banker or mortgage company to work remotely. The rules also clarify requirements concerning office locations of a mortgage banker or mortgage company.

The new rule pertaining to mortgage bankers is available on the Texas Secretary of State website.

The new rule pertaining to mortgage companies is also available on the Texas Secretary of State website.

With respect to remote work, the new rules allow the employees and sponsored residential mortgage loan originators of a mortgage banker or mortgage company to work remotely so long as the mortgage banker or mortgage company:

1. maintains appropriate safeguards for its consumer data, information, and records, including the use of secure virtual private networks and data storage encryption (including cloud storage) where appropriate;

2. employs appropriate risk-based monitoring and oversight processes for work performed remotely and maintains records of those processes;

3. ensures that physical records containing consumer information are not maintained at a remote location and any electronic records containing consumer information located at or accessible from the remote location are secured;

4. ensures that consumer information and records of the mortgage banker or mortgage company are accessible and available to the Department’s Commissioner;

5. provides appropriate training to its employees and sponsored originators to ensure that remote employees or sponsored originators work in an environment conducive and appropriate to consumer privacy; and

6. adopts, maintains, and follows written procedures to ensure that:

   1. its employees and sponsored originators comply with the rule; and

   2. its employees and sponsored originators do not perform an activity from a remote location that would be prohibited if performed at an office location required to be licensed by or registered with the Department.