Texas Agency Scraps Broker Proposal

In a surprise move Nov. 20, the Texas Savings and Loan Department announced a decision to scrap a proposed rule that would have barred state mortgage brokers from charging or retaining loan discount points.Stacy G. London, a member of the Texas Mortgage Broker Advisory Committee, said the panel has formulated a substitute for the proposed rule. "Rather than prohibit discount points like the old rule did, this rule allows brokers to charge discount points, but they would have to be separately identified on the Good Faith Estimate as being paid to the broker vs. the lender,? Ms. Gordon said. She added that it will probably take a few weeks to publish the substitute. "I think what they are going to do is put it up for the remainder of the public comment period,? she said. The advisory committee is appointed by the governor to advise the commissioner of the S&L Department and the Finance Commission on matters relating to the state?s Mortgage Broker Licensing Act.