(a) Criminal history record information. After an applicant submits a complete application to NMLS, including a set of fingerprints, and pays the fees required under §2.104 of this title (relating to Application and Renewal Fees), the OCCC will investigate the applicant. The OCCC will obtain criminal history record information through NMLS based on the applicant's fingerprint submission. The OCCC will continue to receive information on new criminal activity reported after the fingerprint information has been initially processed.
(b) Disclosure of criminal history by applicant. The applicant must disclose all criminal history information required to file a complete application with NMLS. Failure to provide any information required by NMLS or requested by the OCCC reflects negatively on the applicant's character and general fitness to hold a license. The OCCC may request additional criminal history information from the applicant, including the following:
  (1) information about arrests, charges, indictments, and convictions;
  (2) reliable documents or testimony necessary to make a determination under subsection (c) of this section, including letters of recommendation;
  (3) proof that the applicant has maintained a record of steady employment, has supported the applicant's dependents, and has otherwise maintained a record of good conduct; and
  (4) proof that all outstanding court costs, supervision fees, fines, and restitution as may have been ordered have been paid.
(c) Crimes directly related to licensed occupation. The OCCC may deny a license application, or suspend or revoke a license, if the applicant or licensee has been convicted of an offense that directly relates to the duties and responsibilities of a licensed residential mortgage loan originator, as provided by Texas Occupations Code, §53.021(a)(1).
  (1) Originating residential mortgage loans involves making representations to borrowers regarding the terms of the loan and collecting charges in a legal manner. Consequently, the following crimes are directly related to the duties and responsibilities of a licensee and may be grounds for denial, suspension, or revocation:
    (A) theft;
    (B) assault;
    (C) any offense that involves the misrepresentation, deceptive practices, or making a false or misleading statement (including fraud or forgery);
    (D) any offense that involves breach of trust or other fiduciary duty;
    (E) any criminal violation of a statute governing credit transactions or debt collection;
    (F) failure to file a government report, filing a false government report, or tampering with a government record;
    (G) any greater offense that includes an offense described in subparagraphs (A) - (F) of this paragraph as a lesser included offense; and
    (H) any offense that involves intent, attempt, aiding, solicitation, or conspiracy to commit an offense described in subparagraphs (A) - (G) of this paragraph.
  (2) In determining whether a criminal offense directly relates to the duties and responsibilities of holding a license, the OCCC will consider the following factors, as specified in Texas Occupations Code, §53.022:
    (A) the nature and seriousness of the crime;
    (B) the relationship of the crime to the purposes for requiring a license to engage in the occupation;
    (C) the extent to which a license might offer an opportunity to engage in further criminal activity of the same type as that in which the person previously had been involved;
    (D) the relationship of the crime to the ability or capacity required to perform the duties and discharge the responsibilities of a licensee; and
    (E) any correlation between the elements of the crime and the duties and responsibilities of the licensed occupation.
  (3) If a criminal conviction directly relates to the duties and responsibilities of the license, the OCCC will consider the following factors in determining whether to deny a license application, or suspend or revoke a license, as specified in Texas Occupations Code, §53.023:
    (A) the extent and nature of the person's past criminal activity;
    (B) the age of the person when the crime was committed;
    (C) the amount of time that has elapsed since the person's last criminal activity;
    (D) the conduct and work activity of the person before and after the criminal activity;
    (E) evidence of the person's rehabilitation or rehabilitative effort while incarcerated or after release, or following the criminal activity if no time was served;
    (F) evidence of the person's compliance with any conditions of community supervision, parole, or mandatory supervision; and
    (G) evidence of the person's current circumstances relating to fitness to hold a license, which may include letters of recommendation.
(d) Crimes related to financial responsibility, character, or general fitness. The OCCC may deny a license application, or suspend or revoke a license, if the applicant or licensee has been convicted of an offense that relates to financial responsibility, character, or general fitness to hold a license, as provided by Texas Finance Code, §180.055(a)(3) and §180.201(2)(A). If the applicant or licensee has been convicted of an offense described by subsections (c)(1), (f)(1), or (f)(2) of this section, this reflects negatively on the applicant or licensee's character and fitness. The OCCC may deny a license application based on other criminal history of the applicant if, when the application is considered as a whole, the agency does not find that the financial responsibility, experience, character, and general fitness of the applicant are sufficient to command the confidence of the public and warrant the belief that the applicant will operate lawfully and fairly. The OCCC will consider the factors identified in subsection (c)(2) - (3) of this section in its review of character and fitness.
(e) Revocation on imprisonment. A license will be revoked on the licensee's imprisonment following a felony conviction, felony community supervision revocation, revocation of parole, or revocation of mandatory supervision, as provided by Texas Occupations Code, §53.021(b).
(f) Other grounds for denial, suspension, or revocation. The OCCC may deny a license application, or suspend or revoke a license, based on any other ground authorized by statute, including the following:
  (1) a conviction for an offense listed in Texas Code of Criminal Procedure, art. 42A.054, or art. 62.001(6), as provided by Texas Occupations Code, §53.021(a)(2)-(3);
  (2) a conviction for, or plea of guilty or nolo contendere to, a felony during the preceding seven years or a felony involving an act of fraud, dishonesty, breach of trust, or money laundering, as provided by Texas Finance Code, §180.055(a)(2) and §180.201(2)(A);
  (3) a material misstatement or failure to provide information in a license application, as provided by Texas Finance Code, §180.201(2); and
  (4) any other information indicating that the financial responsibility, character, or general fitness of the applicant or licensee do not command the confidence of the public or do not warrant the determination that the applicant or licensee will operate honestly, fairly, and efficiently within the purposes of Texas Finance Code, Chapter 180 and other appropriate regulatory laws of this state, as provided by Texas Finance Code, §180.055(a)(3) and §180.201(2)(A).

Source Note: The provisions of this §2.106 adopted to be effective September 10, 2015, 40 TexReg 5773; amended to be effective May 7, 2020, 45 TexReg 2827; amended to be effective July 14, 2022, 47 TexReg 3961