Texas Savings and Mortgage Lending Department Enforcement Actions
Getting a home loan is sometimes complicated. That is why mortgages are so attractive to would-be scammers. Learn how to spot and avoid different types of mortgage scams.Mortgage-Related ComplaintsIf you have a mortgage-related complaint or think you have been the subject of one of the mortgage scams below, you have several ways of reporting your experience: Show
The Bureau is charged with overseeing most banks, credit unions, lenders, and mortgage servicers. If your lender or mortgage servicer is state licensed, you can also contact the Texas Department of Savings and Mortgage Lending. Alternatively, if your lender or mortgage servicer is a national bank, you can contact the OCC. If you are unsure who regulates your lender or mortgage servicer, the Texas Department of Banking may be able to help. Foreclosure Rescue and Mortgage Modification ScamsThese two types of scams could cost you thousands of dollars and, potentially, your home. Scammers will portray themselves as mortgage relief service providers to target homeowners who are at risk of foreclosure. The scammers typically guarantee that they can save your home from foreclosure and/or lower your monthly mortgage payments in exchange for large fees. Instead of protecting your home from foreclosure, they may actually speed up the foreclosure process by encouraging you to stop communicating with your lender and mortgage servicer. Federal law prohibits mortgage relief service providers from requesting or receiving payment of any fees (or other consideration) for obtaining mortgage assistance before a mortgage modification or other agreement has been executed with your lender/mortgage servicer. Among other requirements, mortgage assistance relief service providers must provide you with:
You may accept or reject the offer. If you reject the offer, you do not have to pay the mortgage relief service provider at all. Protect YourselfTo protect yourself from scammers:
Were You a Victim?If you believe you have become the victim of a foreclosure rescue or mortgage modification scam, cut off all communication with the scammer and file a complaint with us. At Risk of Foreclosure?Consider one or more of the steps below:
Understanding Reverse MortgagesA reverse mortgage is a loan issued to homeowners age 62 or older who have sufficient equity in their home. A reverse mortgage loan allows certain homeowners to access a portion of their home equity as cash and defer payment of the loan until they pass away or sell or move out of their home. Borrowers, however, are still responsible for paying property taxes and homeowner’s insurance during the term of the reverse mortgage loan. A reverse mortgage loan is secured by a lien on the home and is typically paid off when the home is sold. Although payment of principal and interest may not be required under a reverse mortgage loan until the entire loan becomes due and payable, interest will continue to accrue during the term of the loan. In addition, reverse mortgage loans have closing costs which may be financed as part of the loan. Risks of Reverse MortgagesReverse mortgages can be attractive—especially to seniors who want or need to supplement their income. But be very careful before signing a reverse mortgage loan. And do not sign any document that you do not fully understand. Beware of:
Know Your OptionsBefore deciding whether a reverse mortgage loan makes sense for you, you should fully understand the terms of the loan and what other options you might have. Contact the U.S. Department of Housing and Urban Development (HUD) at (800) 569-4287, or visit HUD’s website. HUD can provide a list of HUD-approved reverse mortgage counseling agencies who can provide information to you for free or at a low-cost. Who enforces the Texas mortgage Broker License Act?The essentials about getting licensed
In Texas, there are two licensing bodies that regulate mortgage brokers. They are the Department of Savings and Mortgage Lending and the Office of the Consumer Credit Commissioner (OCCC).
What are red flags for lenders?Complying with the Red Flags Rules
These may include, for example, unusual account activity, fraud alerts on a consumer report, or attempted use of suspicious account application documents.
Who is the person who heads the Texas Department of Savings and Mortgage Lending?Staff
Which of the following is a reason the TX SML would deny an application for licensure as an MLO?The SAFE Act provides for the denial of an MLO for the following reasons: The applicant has been convicted of a felony involving an act of fraud, dishonesty, breach of trust, or money laundering – these types of convictions create a lifetime bar to MLO licensing.
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