(a) Purpose. This section clarifies and establishes requirements related to the wrap lender's requirement to maintain information and records necessary to facilitate the Commissioner's inspection of a wrap lender required to register as a residential mortgage loan servicer under Finance Code Chapter 158, as provided by Finance Code §159.252(d)(1). The requirements of this section are in addition to and supplement the requirements a wrap lender registrant or other person is required to maintain as a licensee or registrant under Finance Code Chapters 156, 157, 158, or 342, as applicable.
(b) Maintenance of Records, Generally. Each wrap lender registrant must maintain records with respect to each wrap mortgage loan under Finance Code Chapter 159 and make those records available for examination under Finance Code §159.252. The records required by this section may be maintained using a paper, manual, electronic, or digitally-imaged recordkeeping system, or a combination thereof, unless otherwise specified by other applicable law. The records must be accurate, complete, current, legible, and readily accessible and sortable. If the requirements of other applicable law governing recordkeeping by the wrap loan registrant differ from the requirements of this section, such other applicable law prevails only to extent this section conflicts with the requirements of this section.
(c) Required Records. A wrap lender registrant must maintain the following items:
  (1) Wrap Mortgage Servicing Log. A wrap mortgage servicing log for each wrap mortgage loan serviced by a wrap lender registrant, maintained on a current basis (which means that all entries must be made within seven days from the date on which the matters they relate to occurred), setting forth, at a minimum:
    (A) the loan or account number, or other unique identifier assigned by the wrap lender registrant to the wrap mortgage loan;
    (B) the name and contact information of each wrap borrower; and
    (C) the date the wrap mortgage loan was entered into by the wrap lender and wrap borrower.
  (2) Wrap Borrower Index. The current alphabetical index or a report of outstanding wrap mortgage loans of the wrap lender registrant, regardless of whether or not it services the wrap mortgage loan, reflecting the name of each wrap borrower and the loan or account number, or other unique identifier assigned by the wrap lender to the wrap mortgage loan. A wrap lender registrant may maintain the wrap borrower index as a part of other records maintained by the wrap lender registrant; provided, the wrap lender registrant is able to sort, generate, and print, as a separate record, the wrap borrower index in strict alphabetical order.
  (3) Wrap Mortgage Transaction File. A wrap lender registrant must maintain a wrap mortgage transaction file for each wrap mortgage loan or be able to produce the same information within a reasonable time upon request. The wrap mortgage transaction file must contain documents demonstrating the wrap lender registrant's compliance with applicable law, including Finance Code Chapter 159, and any applicable state and federal statutes, rules, or regulations. The wrap mortgage loan transaction file must include the following records or documents:
    (A) for all wrap mortgage loan transactions:
      (i) the promissory note, loan agreement, or repayment agreement, signed by the wrap borrower(s);
      (ii) the recorded deed of trust, contract, security deed, security instrument, or other lien transfer document signed by the wrap borrower(s);
      (iii) the title insurance policy or abstract of title;
      (iv) the initial and final mortgage application (including any attachments, supplements, or addenda thereto), signed and dated by the mortgage applicant and the residential mortgage loan originator, and any other written or recorded information used to evaluate the mortgage application, as required by Regulation B, 12 C.F.R. §1002.4(c);
      (v) the real estate contract documenting the sale of the residential real estate securing the wrap mortgage loan;
      (vi) the disclosure statement requirement by Finance Code §159.101 and §78.101 of this title (relating to Required Disclosure), including any foreign-language disclosure required by Finance Code §159.102;
      (vii) the initial and any revised integrated loan estimate disclosure required by Regulation Z - Truth-in-Lending, 12 C.F.R. §1026.37;
      (viii) the initial, revised, and final closing disclosure as required by Regulation Z - Truth-in-Lending, 12 C.F.R. §1026.38;
      (ix) any rate lock agreements, or similar document;
      (x) the records relating to the ability-to-repay the wrap mortgage loan required by Regulation Z, 12 C.F.R. §1026.25 and §1026.43;
      (xi) copies of any appraisal reports or written valuation reports used to determine the value of the residential real estate;
      (xii) the privacy notice required by Regulation P, 12 C.F.R. §1016.5; and
      (xiii) the wrap borrower's authorization and consent to receive electronic documents as required by the E-sign Act and Regulation Z - Truth-in-Lending, 12 C.F.R. §1026.17(a)(1);
    (B) with respect to servicing the wrap mortgage loan, the following additional records are required to be maintained:
      (i) any payoff requests received from the wrap borrower, agent of the wrap borrower, another lender, or a title company;
      (ii) any payoff statements issued to the wrap borrower, agent of the wrap borrower, another lender, or a title company;
      (iii) if the wrap mortgage loan is paid off or otherwise satisfied, a copy of the release of lien;
      (iv) receipts or invoices along with proof of payment for any attorneys' fees assessed, charged, or collected in the collection of a delinquent wrap mortgage loan;
      (v) if collateral protection insurance is acquired or purchased, a copy of the insurance policy or certificate of insurance and the notice required by Finance Code §307.052;
      (vi) any periodic statements or billing invoices sent to the wrap borrower;
      (vii) copies of any collection letters or notices sent by the wrap lender registrant or its agent to the wrap borrower;
      (viii) any modification, reinstatement, or settlement agreement that is proposed or entered into between the wrap borrower and the wrap lender registrant;
      (ix) any records related to a consumer inquiry, complaint, or error resolution;
      (x) any records or documents relating to a request for protection under the Servicemembers Civil Relief Act, 50 U.S.C. §3901 et seq.; and
      (xi) any other servicing notice, disclosure, or record required by federal or state law;
    (C) for wrap mortgage loan transactions involving a foreclosure or attempted foreclosure, the following records:
      (i) for transactions involving judicial foreclosure:
        (I) any records pertaining to a judicial foreclosure including records from the wrap lender registrant's attorneys, the court, or the wrap borrower or the wrap borrower's agent;
        (II) any notice to cure the default sent to the wrap borrower and each superior lienholder as required by Texas Property Code §51.002(d), including verification of delivery of the notice;
        (III) any notice of intent to accelerate sent to the wrap borrower and each superior lienholder, including verification of delivery of the notice;
        (IV) any notice of acceleration sent to the wrap borrower and each superior lienholder; and
        (V) any records related to receipt of the foreclosure proceeds;
      (ii) for transactions involving non-judicial foreclosure:
        (I) the notice to cure the default sent to the wrap borrower and each superior lienholder as required by Texas Property Code §51.002(d), including verification of delivery of the notice;
        (II) the notice of intent to accelerate sent to the wrap borrower and each superior lienholder, including verification of delivery of the notice;
        (III) the notice of acceleration sent to the wrap borrower and each superior lienholder;
        (IV) the notice of sale required by Texas Property Code §51.002(b) including verification of delivery of the notice;
        (V) any records related to the foreclosure sale by the trustee including the person purchasing the property, and the dollar amount of the proceeds received from the foreclosure sale;
        (VI) any records related to a short sale, deed-in-lieu of foreclosure, or similar disposition;
Cont'd...