Answer :
The authority to regulate mortgage professionals in Texas is found in the Texas Finance Code, this authority is detailed under c) Title 3, Chapter 156 of the Texas Finance Code.
This chapter outlines the laws and regulations governing the conduct and licensing of mortgage professionals in the state of Texas.
Regulatory frameworks like this are essential to ensure that mortgage professionals adhere to industry standards and ethical practices, providing protection and assurance to consumers engaging in mortgage-related transactions.
Final answer:
The authority to regulate mortgage professionals in Texas is outlined in Title 3, Chapter 156 of the Texas Finance Code, as a response to past financial crises and the need for a stable mortgage industry. So the correct option is C.
Explanation:
The authority to regulate mortgage professionals in Texas is granted by specific laws found in the Texas Finance Code. The correct answer to the provided question is found under Title 3, Chapter 156 of the Texas Finance Code. These regulations emerged due to the housing and mortgage crisis that contributed to the Great Recession. Mortgage companies during that period engaged in significant fraudulent activities during the initiation and documentation of mortgages, which were then sold to investors. The subsequent losses experienced by investors and homeowners necessitated the strengthening of regulatory frameworks to prevent similar financial disasters.
Over time, as the financial sector in Texas developed, amendments were made to Section 50 and Section 51 of the Texas constitution to facilitate financial activities such as lending and redistribution of federal assistance. Furthermore, regulatory complexities and splintering also provided a compelling reason for clearer and more comprehensive state-level regulations, which were not always covered sufficiently by federal agencies such as the Federal Reserve Board or the Securities and Exchange Commission.Thus, to alleviate the consequences of financial crises and encourage a stable financial environment, the Texas legislature has made numerous amendments to the state constitution and established clear regulations within the Finance Code to govern the mortgage industry and broader financial services.
