Section 56.301 - Investigations(a) Purpose. This section clarifies and establishes requirements related to investigations of a mortgage company and its sponsored originators conducted by SML under Finance Code §156.301. (b) Reasonable Cause. SML will conduct an investigation if it has reasonable cause to do so. Reasonable cause is deemed to exist if SML receives or discovers information from a source SML has no reason to believe is other than credible indicating that a violation of law more likely than not occurred that is within SML's authority to take action to address. The absence of reasonable cause to initiate an investigation does not constitute grounds to challenge and does not invalidate action taken by SML to address a violation found during the course of an investigation.(c) Investigation Methods. Investigations will be conducted as SML deems appropriate based on the relevant facts and circumstances then known. An investigation may include: (1) review of documentary evidence; (2) interviews with complainants, respondents, and third parties, and the taking of sworn written statements; (3) obtaining information from other state or federal agencies, regulatory authorities, or self-regulatory organizations;(4) requiring complainants or respondents to provide explanatory, clarifying, or supplemental information; and(5) other lawful investigative methods SML deems necessary or appropriate.7 Tex. Admin. Code § 56.301
Adopted by Texas Register, Volume 49, Number 46, November 15, 2024, TexReg 9210, eff. 11/23/2024