TITLE 7. BANKING AND SECURITIES

PART 5. OFFICE OF CONSUMER CREDIT COMMISSIONER

CHAPTER 83. REGULATED LENDERS AND CREDIT ACCESS BUSINESSES

SUBCHAPTER A. RULES FOR REGULATED LENDERS

The Finance Commission of Texas (commission) adopts amendments to §83.301 (relating to Definitions), §83.302 (relating to Filing of New Application), §83.303 (relating to Transfer of License; New License Application on Transfer of Ownership), §83.306 (relating to Updating Application and Contact Information), §83.307 (relating to Processing of Application), §83.308 (relating to Relocation), §83.309 (relating to License Inactivation or Voluntary Surrender), §83.311 (relating to Applications and Notices as Public Records), §83.403 (relating to License Term, Renewal, and Expiration), and §83.404 (relating to Denial, Suspension, or Revocation Based on Criminal History); and adopts the repeal of §83.304 (relating to Change in Form or Proportionate Ownership), §83.305 (relating to Amendments to Pending Application), and §83.402 (relating to License Display) in 7 TAC Chapter 83, concerning Regulated Lenders and Credit Access Businesses.

The commission adopts the amendments to §83.306, §83.307, §83.309, §83.311, §83.403, and §83.404, and adopts the repeal of §83.304, §83.305, and §83.402, without changes to the proposed text as published in the November 7, 2025, issue of the Texas Register (50 TexReg 7172).

The commission adopts the amendments to §83.301, §83.302, §83.303, and §83.308 with changes to the proposed text as published in the November 7, 2025, issue of the Texas Register (50 TexReg 7172).

The rules in 7 TAC Chapter 83, Subchapter A govern regulated loans. In general, the purposes of the rule changes to 7 Chapter 83, Subchapter A are to implement the OCCC's transition to the NMLS licensing system for regulated lenders, to remove rule text that is no longer necessary, and to make other technical corrections and updates related to licensing.

Adopted amendments and repeals in §83.301 through §83.404 implement the OCCC's transition to the NMLS system. The Nationwide Multistate Licensing System (NMLS) is an online platform used by state financial regulatory agencies to manage licenses, including license applications and renewals. NMLS was created in 2008. The federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 explains that the purposes of NMLS include increasing uniformity and reducing regulatory burden. SAFE Act, 12 USC §5101. Each state currently uses NMLS for licensing individual RMLOs, and states are increasingly using the system to license consumer finance companies. NMLS is managed by the Conference of State Bank Supervisors and is subject to ongoing modernization efforts and enhancements.

Under Texas Finance Code, §14.109, the OCCC is authorized to require use of NMLS for certain license and registration types, including regulated lender licenses under Texas Finance Code, Chapter 342. The OCCC has begun a phased process of migrating license groups from ALECS (the OCCC's previous licensing platform) to NMLS. In 2025, a majority of licensed regulated lenders completed their transition to NMLS. The OCCC believes that moving to NMLS will improve the user experience of the licensing system and promote efficiency. This is particularly true for entities that hold licenses with the OCCC and with another state agency, because these entities will be able to manage multiple licenses through NMLS.

Adopted amendments to §83.301 replace the term "principal party" with "key individual" to be consistent with the terminology in NMLS. Another amendment adds a definition of "NMLS." Since the proposal, a technical change has been made to add the word "an" between "including" and "individual" in the definition of "key individual."

Adopted amendments to §83.302 streamline license application requirements and refer to instructions that the OCCC has published through NMLS. Currently, §83.302 contains a detailed list of license application items, with requirements that differ based on the applicant's entity type (e.g., partnership, corporation, limited liability company). In addition to ensuring consistency with NMLS, the amendments significantly simplify §83.302, and ensure that an applicant can easily read and understand the rule. Since the proposal, a list of items for branch license applications has been added at §83.302(c). Separate licenses for branch locations are currently required by Texas Finance Code, §342.502(b). The additional language in §83.302(c) will clarify what the OCCC generally expects a licensee to provide with a branch license application (as opposed to a company license application). Since the proposal, the reference to any assumed names or other trade names has been moved to §83.302(b)(8) for clarity. Since the proposal, references to §83.303 and required items for a transfer of ownership have been added at §83.302(b)(12) and §83.302(c)(4), in order to provide additional clarity. An amendment at §83.302(d) explains that the OCCC may require additional, clarifying, or supplemental information to determine that the applicant meets statutory licensing requirements. An amendment at §83.302(e) explains that an applicant must immediately amend a pending application if any information changes requiring a materially different response, replacing language that will be removed from §83.306(a), as explained later in this preamble.

Adopted amendments to §83.303 streamline and simplify requirements for transfer of ownership and license transfer to ensure consistency with NMLS. In §83.303(b)(3), amendments streamline the definition of "transfer of ownership" while maintaining references to changes in management or control of a business, and also maintaining current exclusions relating to changes in proportionate ownership and relocations of transactions. The adoption maintains certain rule text in the definition of "transfer of ownership" that would have been removed in the proposed amendments. This change is based on further consideration since the proposal. In order for the OCCC to ensure that licensees operate lawfully and fairly, it may be appropriate and necessary for the OCCC to review certain changes of control of a single entity through the license application process. An amendment to §83.303(c) explains that to transfer a license, a transferor may request surrender of its license after the OCCC approves the transferee's new license application on transfer of ownership. Other amendments throughout §83.303 ensure consistency with this revised transfer process.

The adoption repeals §83.304, which currently requires licensees to notify the OCCC of changes to organizational form, mergers resulting in creation of a new or different surviving entity, and certain changes in proportionate ownership. Going forward in NMLS, the OCCC anticipates that these changes will be handled through the advance change notice process, as explained later in this preamble in the discussion of amendments to §83.306. Therefore, §83.304 will no longer be necessary.

The adoption repeals §83.305, which currently requires license applicants to provide supplemental information to the OCCC on request. Because of the adopted amendment at §83.302(c) explaining the OCCC may require additional information, §83.305 will no longer be necessary.

Adopted amendments to §83.306 consolidate and simplify the types of required notifications that a licensee must provide to the OCCC when a change occurs. In §83.306(a), the amendments list advance change notices. NMLS uses the term "advance change notice" to refer to notifications that must be provided on or before the date of the change, in accordance with an agency's written instructions. As explained in the amendments to §83.306(a), this includes changes to the legal name of the entity, the legal status of the entity, names of key individuals, branch location addresses, and other listed items. In §83.306(b), amendments list notifications that are required not later than 30 days after the licensee has knowledge of the information. These items include bankruptcies of the licensee or its direct owners, because a bankruptcy is a significant event that may impact the financial responsibilities of a licensee and its ability to address compliance issues. These items also include notifications of data breaches affecting at least 250 Texas residents. Data security is a crucial issue. The OCCC's 2025-2029 strategic plan includes action items to "[p]romote cybersecurity awareness and best practices among regulated entities" and "[m]onitor cybersecurity incidents and remediation efforts reported by regulated entities." Recent data breaches affecting financial institutions highlight the urgent need for vigilance in this industry. The notification amendments will help ensure that the OCCC can monitor this crucial issue.

Adopted amendments to §83.307 revise license application processing requirements to be consistent with NMLS and with the statute at Texas Finance Code, §342.104. An amendment at §83.307(d) explains that a license application may be considered withdrawn if a complete application has not been filed within 30 days after a notice of deficiency has been sent to the applicant, consistent with how license applications are processed in NMLS. Under Texas Finance Code, §342.104(b), if the OCCC finds that a license applicant has not met the eligibility requirements for a license, then the OCCC will notify the applicant. Under Texas Finance Code, §342.104(c), an applicant has 30 days after the date of the notification to request a hearing on the denial. Amendments at §83.307(d) specify that if the eligibility requirements for a license have not been met, the OCCC will send a notice of intent to deny the license application, as described by Texas Finance Code, §342.104(b). Amendments at §83.307(e) revise current language to specify that an affected applicant has 30 days from the date of the notice of intent to deny to request a hearing, as provided by Texas Finance Code, §342.104(c). An amendment removes current §83.307(e), regarding disposition of fees, because this language unnecessarily duplicates language in §83.310 (regarding Fees). Amendments to §83.307(f) clarify the 60-day target period to process a license application and the 60-day target period to set a requested hearing on an application denial, in accordance with Texas Finance Code, §342.104(c)-(d).

Adopted amendments to §83.308 revise requirements for notice of relocation of licensed offices. The adoption removes current §83.308(a), because the requirement to notify the OCCC of a branch office relocation will be moved to §83.306(a) as an advance change notice, as discussed earlier in this preamble. Since the proposal, a technical change has been made to ensure that an internal cross-reference correctly cites subsection (b).

Adopted amendments to §83.309 revise requirements for license surrender. The amendments explain that a licensee may surrender a license by providing the information required by the OCCC's written instructions, in accordance with Texas Finance Code, §342.160, and that a surrender is effective when the OCCC approves the surrender.

Adopted amendments to §83.311 remove a sentence about the return of original documents filed with a license application. This sentence is no longer necessary because the OCCC no longer accepts original paper documents with a license application.

The adoption repeals §83.402, which describes the requirement to display a license. This section is unnecessary because it duplicates the statutory license display requirement at Texas Finance Code, §342.152. Going forward, licensees may comply with the statutory license display requirement by printing out company license information from NMLS.

Adopted amendments to §83.403 revise requirements for license renewal. An amendment at §83.403(b) explains that a licensee must maintain an active account in NMLS (or a designated successor system) in order to maintain and renew a license, and that renewal may be unavailable to a licensee that fails to maintain an active account. An amendment at §83.403(d) specifies that the OCCC may send notice of delinquency of an annual assessment fee electronically through NMLS or by email to the primary company contact, removing current language that refers to a "master file" address under the OCCC's current system.

Adopted amendments to §83.404 revise criminal history review requirements to explain that the OCCC will obtain criminal history record information through NMLS and to use the term "key individual."

The OCCC distributed an early precomment draft of proposed changes to interested stakeholders for review, and then held a stakeholder meeting and webinar regarding the rule changes. The OCCC received one informal precomment, which was submitted by an association of regulated lenders. The OCCC appreciates the thoughtful input of stakeholders.

The OCCC received no official comments on the proposed amendments.

In its precomment, an association of regulated lenders requested that "the OCCC not expand the notice requirement in Section 83.306(b)(1) beyond items that relate to licensed activity or that would change an answer in an original application," and requested that this provision "be limited to final actions and relevant information." In response to this precomment, adopted §83.306(b)(1) states that notification is required for actions "that were not disclosed in the original application and would require a different answer than that given in the original license application." The commission and the OCCC agree that this item should be limited to actions that are relevant to licensing and would require a different answer from the license application. However, the commission and the OCCC disagree with the suggestion to limit this provision to "final" actions, since it may be appropriate to require information about significant pending civil or regulatory actions that are relevant to licensing.

CHAPTER 89. PROPERTY TAX LENDERS

The Finance Commission of Texas (commission) adopts amendments to §89.206 (relating to Application for Exemption), §89.207 (relating to Files and Records Required), §89.301 (relating to Definitions), §89.302 (relating to Filing of New Application), §89.303 (relating to Transfer of License; New License Application on Transfer of Ownership), §89.306 (relating to Updating Application and Contact Information), §89.307 (relating to Processing of Application), §89.308 (relating to Relocation of Licensed Offices), §89.309 (relating to License Inactivation or Voluntary Surrender), §89.311 (relating to Applications and Notices as Public Records), §89.403 (relating to License Term, Renewal, and Expiration), and §89.405 (relating to Denial, Suspension, or Revocation Based on Criminal History); adopts the repeal of §89.304 (relating to Change in Form or Proportionate Ownership), §89.305 (relating to Amendments to Pending Application), and §89.402 (relating to License Display); and adopts new §89.806 (relating to Payoff Request from Borrower) in 7 TAC Chapter 89, concerning Property Tax Lenders.

The commission adopts the amendments to §§89.206, 89.207, 89.306, 89.307, 89.308, 89.309, 89.311, 89.403, and 89.405, and adopts the repeal of §§89.304, 89.305, and 89.402, without changes to the proposed text as published in the November 7, 2025 issue of the Texas Register (50 TexReg 7183). The rules will not be republished.

The commission adopts the amendments to §§89.301, 89.302, and 89.303, and adopts new §89.806, with changes to the proposed text as published in the November 7, 2025 issue of the Texas Register (50 TexReg 7183). The rules will be republished.

The rules in 7 TAC Chapter 89 govern property tax loans. In general, the purpose of the proposed rule changes to 7 TAC Chapter 89 is to implement changes resulting from the commission's review of the chapter under Texas Government Code, §2001.039.

An adopted amendment to §89.206 removes a requirement to provide an individual's Social Security number on the form for an individual's exemption from licensing. Under Texas Finance Code, §351.051(c), certain individuals are exempt from licensing as property tax lenders, including individuals making five or fewer property tax loans in any consecutive 12-month period from the individual's own funds. This amendment would minimize sensitive personal information collected by the OCCC.

Adopted amendments to §89.207 update recordkeeping requirements for property tax lenders. Currently, provisions throughout §89.207 refer to both paper and electronic recordkeeping systems. Amendments throughout §89.207 simplify and rearrange this language to refer to electronic recordkeeping systems before referring to paper systems, based on licensees' increasing use of electronic systems rather than paper systems. Currently, §89.207(3)(L) describes different sets of records to be maintained for judicial foreclosures and nonjudicial foreclosures. Property tax lenders' ability to perform nonjudicial foreclosures was previously codified in Texas Tax Code, §32.06(c)(2), and was repealed in 2013 (SB 247 (2013)). Because the authority to perform nonjudicial foreclosures was repealed, the commission and the OCCC believe that it is no longer necessary to describe two different sets of documents, and that the rule should be simplified to describe one set of documents for foreclosures.

Additional adopted amendments to §89.207 relate to data security recordkeeping. An amendment at §89.207(9)(A) specifies that licensees must maintain written policies and procedures for an information security program to protect retail buyers' customer information, as required by the Federal Trade Commission's Safeguards Rule, 16 C.F.R. part 314. Another amendment at §89.207(9)(B) specifies that if a licensee maintains customer information concerning 5,000 or more consumers, then the licensee must maintain a written incident response plan and written risk assessments, as required by 16 C.F.R. §314.4. An amendment at §89.207(10) specifies that licensees must maintain data breach notifications to consumers and to the Office of the Attorney General under Texas Business & Commerce Code, §521.053. Data security is a crucial issue. The OCCC's 2025-2029 strategic plan includes action items to "[p]romote cybersecurity awareness and best practices among regulated entities" and "[m]onitor cybersecurity incidents and remediation efforts reported by regulated entities." Recent data breaches affecting financial institutions highlight the urgent need for vigilance in this industry. The adopted data security recordkeeping amendments will help ensure that the OCCC can monitor this crucial issue.

Adopted amendments and repeals in §89.301 through §89.405 would implement the OCCC's transition to the NMLS system. The Nationwide Multistate Licensing System (NMLS) is an online platform used by state financial regulatory agencies to manage licenses, including license applications and renewals. NMLS was created in 2008. The federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 explains that the purposes of NMLS include increasing uniformity and reducing regulatory burden. SAFE Act, 12 USC §5101. Each state currently uses NMLS for licensing individual RMLOs, and states are increasingly using the system to license consumer finance companies. NMLS is managed by the Conference of State Bank Supervisors and is subject to ongoing modernization efforts and enhancements.

Under Texas Finance Code, §14.109, the OCCC is authorized to require use of NMLS for certain license and registration types, including property tax lender licenses under Texas Finance Code, Chapter 351. The OCCC has begun a phased process of migrating license groups from ALECS (the OCCC's previous licensing platform) to NMLS. In 2025, licensed property tax lenders completed their transition to NMLS. The OCCC believes that moving to NMLS will improve the user experience of the licensing system and promote efficiency. This is particularly true for entities that hold licenses with the OCCC and with another state agency, because these entities will be able to manage multiple licenses through NMLS.

Adopted amendments to §89.301 replace the term "principal party" with "key individual" to be consistent with the terminology in NMLS. Another amendment adds a definition of "NMLS." Since the proposal, a technical change has been made to add the word "an" between "including" and "individual" in the definition of "key individual."

Adopted amendments to §89.302 would streamline license application requirements and refer to instructions that the OCCC has published through NMLS. Currently, §89.302 contains a detailed list of license application items, with requirements that differ based on the applicant's entity type (e.g., partnership, corporation, limited liability company). In addition to ensuring consistency with NMLS, the amendments significantly simplify §89.302, and ensure that an applicant can easily read and understand the rule. Since the proposal, a list of items for branch license applications has been added at §89.302(c). Separate licenses for branch locations are currently required by Texas Finance Code, §351.052(b). The additional language in §89.302(c) will clarify what the OCCC generally expects a licensee to provide with a branch license application (as opposed to a company license application). Since the proposal, the reference to any assumed names or other trade names has been moved to §89.302(b)(8) for clarity. Since the proposal, references to §89.303 and required items for a transfer of ownership have been added at §89.302(b)(12) and §89.302(c)(4), in order to provide additional clarity. An amendment at §89.302(d) explains that the OCCC may require additional, clarifying, or supplemental information to determine that the applicant meets statutory licensing requirements. An amendment at §89.302(e) explains that an applicant must immediately amend a pending application if any information changes requiring a materially different response, replacing language that will be removed from §89.306(a), as explained later in this preamble.

Adopted amendments to §89.303 streamline and simplify requirements for transfer of ownership and license transfer to ensure consistency with NMLS. In §89.303(b)(3), amendments streamline the definition of "transfer of ownership" while maintaining references to changes in management or control of a business, and also maintaining the current exclusion relating to changes in proportionate ownership. The adoption maintains certain rule text in the definition of "transfer of ownership" that would have been removed in the proposed amendments. This change is based on further consideration since the proposal. In order for the OCCC to ensure that licensees operate lawfully and fairly, it may be appropriate and necessary for the OCCC to review certain changes of control of a single entity through the license application process. An amendment to §89.303(c) explains that to transfer a license, a transferor may request surrender of its license after the OCCC approves the transferee's new license application on transfer of ownership. Other amendments throughout §89.303 ensure consistency with this revised transfer process.

The adoption repeals §89.304, which currently requires licensees to notify the OCCC of changes to organizational form, mergers resulting in creation of a new or different surviving entity, and certain changes in proportionate ownership. Going forward in NMLS, the OCCC anticipates that these changes will be handled through the advance change notice process, as explained later in this preamble in the discussion of amendments to §89.306. Therefore, §89.304 will no longer be necessary.

The adoption repeals §89.305, which currently requires license applicants to provide supplemental information to the OCCC on request. Because of the adopted amendment at §89.302(c) explaining the OCCC may require additional information, §89.305 will no longer be necessary.

Adopted amendments to §89.306 consolidate and simplify the types of required notifications that a licensee must provide to the OCCC when a change occurs. In §89.306(a), the amendments list advance change notices. NMLS uses the term "advance change notice" to refer to notifications that must be provided on or before the date of the change, in accordance with an agency's written instructions. As explained in the amendments to §89.306(a), this includes changes to the legal name of the entity, the legal status of the entity, names of key individuals, branch location addresses, and other listed items. In §89.306(b), amendments list notifications that are required not later than 30 days after the licensee has knowledge of the information. These items include bankruptcies of the licensee or its direct owners, because a bankruptcy is a significant event that may impact the financial responsibilities of a licensee and its ability to address compliance issues. These items also include notifications of data breaches affecting at least 250 Texas residents, helping to ensure that the OCCC can effectively monitor the crucial issue of cybersecurity (as discussed earlier in the discussion of adopted amendments to §89.207).

Adopted amendments to §89.307 revise license application processing requirements to be consistent with NMLS and with the statute at Texas Finance Code, §351.104. An amendment at §89.307(d) explains that a license application may be considered withdrawn if a complete application has not been filed within 30 days after a notice of deficiency has been sent to the applicant, consistent with how license applications are processed in NMLS. Under Texas Finance Code, §351.104(b), if the OCCC finds that a license applicant has not met the eligibility requirements for a license, then the OCCC will notify the applicant. Under Texas Finance Code, §351.104(c), an applicant has 30 days after the date of the notification to request a hearing on the denial. Amendments at §89.307(d) specify that if the eligibility requirements for a license have not been met, the OCCC will send a notice of intent to deny the license application, as described by Texas Finance Code, §351.104(b). Amendments at §89.307(e) revise current language to specify that an affected applicant has 30 days from the date of the notice of intent to deny to request a hearing, as provided by Texas Finance Code, §351.104(c). An amendment removes current §89.307(e), regarding disposition of fees, because this language unnecessarily duplicates language in §89.310 (regarding Fees). Amendments to §89.307(f) clarify the 60-day target period to process a license application and the 60-day target period to set a requested hearing on an application denial, in accordance with Texas Finance Code, §351.104(c)-(d).

Adopted amendments to §89.308 revise requirements for notice of relocation of licensed offices. The adoption removes current §89.308(a), because the requirement to notify the OCCC of a branch office relocation will be moved to §89.306(a) as an advance change notice, as discussed earlier in this preamble. An amendment to current §89.308(b) explains that a licensee may send notice of a relocation to a debtor by email if the debtor has provided an email address and consented in writing to be contacted at the email address, in order to accommodate electronic communications.

Adopted amendments to §89.309 revise requirements for license surrender. The amendments explain that a licensee may surrender a license by providing the information required by the OCCC's written instruction, in accordance with Texas Finance Code, §351.160, and that a surrender is effective when the OCCC approves the surrender.

Adopted amendments to §89.311 remove a sentence about the return of original documents filed with a license application. This sentence is no longer necessary because the OCCC no longer accepts original paper documents with a license application.

The adoption repeals §89.402, which describes the requirement to display a license. This section is unnecessary because it duplicates the statutory license display requirement at Texas Finance Code, §351.152. Going forward, licensees may comply with the statutory license display requirement by printing out company license information from NMLS.

Adopted amendments to §89.403 revise requirements for license renewal. An amendment at §89.403(b) explains that a licensee must maintain an active account in NMLS (or a designated successor system) in order to maintain and renew a license, and that renewal may be unavailable to a licensee that fails to maintain an active account. An amendment at §89.403(d) specifies that the OCCC may send notice of delinquency of an annual assessment fee electronically through NMLS or by email to the primary company contact, removing current language that refers to a "master file" address under the OCCC's current system.

Adopted amendments to §89.405 revise criminal history review requirements to explain that the OCCC will obtain criminal history record information through NMLS and to use the term "key individual."

Adopted new §89.806 describes requirements for property tax loan payoff requests authorized by a borrower. Currently, the rules in §89.801 through §89.805 describe requirements for payoff requests from another lienholder to a property tax lender, but these sections do not describe requirements for a payoff request that is authorized by a borrower. Property tax lenders have requested that the OCCC provide guidance and clear standards on this issue, in order to ensure that the payoff process functions properly, that borrowers are enabled to pay off their property tax loans in a reasonable amount of time, and that property tax lenders are able to safeguard borrowers' personal information. Consistent with the prohibition on prepayment penalties in Texas Tax Code, §32.065(d), and Texas Finance Code, §343.205 and §351.0021(a)(9), a borrower has a right to pay off a property tax loan early. New §89.806(a) explains this right. New §89.806(b) describes the payoff request process that should be used if a property tax lender obtains a borrower's authorization to pay off a property tax loan held by an existing property tax lender. This includes guidelines for the authorized property tax lender to obtain the borrower's written authorization and send the payoff request, as well as guidelines for the existing property tax lender to provide a payoff statement. Since the proposal, in response to comments received, changes have been made to §89.806(b) to add the term "certificate of authenticity" in reference to the proof of the borrower's signature, and to refer to the borrower's "signed authorization" for clarity.

The OCCC issued an advance notice of rule review and received three informal comments in response to that notice. Notice of the review of 7 TAC Chapter 89 was published in the Texas Register on August 1, 2025 (50 TexReg 5069). The commission received one official comment in response to that notice from Panacea Lending LLC, a property tax lender.

The OCCC distributed an early precomment draft of the proposed amendments to interested stakeholders for review, and then held a stakeholder meeting and webinar regarding the rule changes. The OCCC received four precomments on the proposed amendments from stakeholders, consisting of one precomment from the Texas Property Tax Lienholders Association (TPTLA), two precomments from a law firm representing property tax lenders, and one precomment from Panacea Lending.

The OCCC received one official written comment on the proposed amendments. The official comment was from TPTLA. TPTLA generally supported the proposed amendments, although it recommended additional changes to §89.806, discussed later in this preamble. In addition, a representative of Panacea Lending testified on the proposed amendments at the Finance Commission's meetings August 15 and October 24, 2025, and reiterated the points from Panacea Lending's precomment and official comment on the rule review. In general, Panacea Lending expressed concerns that the proposed amendments did not sufficiently address various issues raised by Panacea Lending in its comments.

One precomment, provided by a law firm representing property tax lenders, addressed the proposed recordkeeping requirements in §89.207. The precomment recommended revising the current requirements on recordkeeping for the notice to cure the default and the notice of intent to accelerate, to remove the phrase "including verification of delivery of the notice," which is currently used in §89.207(L)(i)(II)-(III), because service is complete under Texas Property Code, §51.002(e) when the notice is placed in the mail. In response to this suggestion, the adopted version of this provision at §89.207(L)(ii)-(iii) states that the record includes "any mail tracking or other verification of delivery of the notice," with the word "any" indicating that property tax lenders would be required to maintain the information if they obtain it.

Several stakeholders commented on the new payoff statement rule at §89.806. The new rule was addressed in Panacea Lending's comments, TPTLA's comments, and a precomment filed by a law firm representing property tax lenders. Stakeholders generally expressed support for having clear guidelines on the issue of borrower payoff statements, although they differed in suggestions for the timing of the payoff statement and technical requirements for the borrower's authorization.

Panacea Lending's comments argue that current rules "allow some lenders to delay, obstruct, or deny valid payoff requests based on technicalities or unreasonable demands." For this reason, Panacea Lending supports a rule specifying that borrowers have an unconditional right to authorize payoff of a property tax loan, that a borrower's electronic signature will be deemed valid, that a lender may not require a payoff request to be submitted through a particular platform, that each property tax lender must maintain a designated email address on its website solely for receiving payoff requests, that a lender must provide a full and accurate statement within three business days, and that refusal to accept a valid payoff request is an unfair or deceptive practice subjecting the property tax lender to an administrative penalty and corrective action. In response to other stakeholder concerns about the inability to verify payoff authorizations, Panacea Lending's precomment suggests that these concerns are "not genuine," and that payoff authorizations from a licensed lender should be presumed valid under a "safe harbor." Panacea Lending's precomment states that it should not be compelled to provide borrower phone numbers or email addresses due to concerns about compliance with the Gramm-Leach-Bliley Act (GLBA). Regarding concerns about Panacea Lending's use of an e-signature platform developed for the medical industry, Panacea Lending argues that its software provides "stronger user authentication, complete audit trails, encrypted records, and robust access controls." Regarding stakeholder concerns about providing payoff statements within three business days, Panacea Lending argues that payoff statements can be generated "within hours, not days," and that any exceptions for loans in litigation could be carved out of a general three-day rule.

In its official comment, TPTLA argues that "the current payoff system among property tax lenders is working effectively," and that there have been "very few complaints related to payoff procedures." TPTLA suggests that the proposed amendments to §89.806 "simply refine and codify best practices already followed by responsible lenders." TPTLA expresses concerns about a company using an e-signature platform designed for HIPAA compliance standards that do not apply to property tax lending, and that "the use of this system is misaligned with financial verification needs and obstructs lenders from confirming the borrower's authorization." TPTLA argues that "[w]ithout access to signer verification data, the lender receiving the payoff request cannot confirm that the borrower truly authorized the release." Therefore, TPTLA suggests that the proof of authorization include a certificate of authenticity containing the signer's name, IP address, email address, and date and time of signing. TPTLA also recommends a seven-business-day period for providing payoff statements due to consistency with industry norms and the federal standard for mortgages under Regulation Z, 12 C.F.R. §1026.36.

In a precomment, a law firm representing property tax lenders recommended a seven-business-day period for issuing the payoff statement and a 30-day period for relying on a payoff statement, citing current periods described by §89.802.

The commission and the OCCC appreciate that borrower payoff requests are an important issue warranting regulatory guidance. This importance underlies the rationale for the adopted amendments to §89.806.

Regarding the timing of the payoff statement, the commission and the OCCC believe that a seven-business-day period is appropriate and consistent with industry standards. This period is also consistent with the current seven-business-day requirement for payoff statements that property tax lenders provide to other lienholders under 7 TAC §89.802(i) (relating to Payoff Statements), and with the seven-business-day period for payoff statements for mortgage loans described in the Truth in Lending Act, 15 U.S.C. §1639g, and Regulation Z, 12 C.F.R. §1026.36(c)(3). For this reason, adopted §89.806(b)(3) contains a seven-business-day period for providing the payoff statement. The commission and the OCCC disagree with the suggestion to use a three-business-day period, because this is inconsistent with industry standards. The commission declines to adopt a specific 30-day period for relying on a payoff statement, because reliance for this amount of time could be impractical in particular situations.

Regarding technical requirements for the payoff request, the commission and the OCCC believe that concerns about validation are genuine, but want to ensure that the rule remains flexible enough to accommodate changing technology. The adopted amendments to §89.806 contain language explaining that lenders must maintain proof of electronic signatures "in accordance with standards for electronic signatures." In response to comments, changes have been made to §89.806(b) to refer to a certificate of authenticity, which would be the expected form of proof of the borrower's authorization. The commission and the OCCC disagree with Panacea Lending's suggestion that providing a borrower's email address or phone number would necessarily violate GLBA. This issue could be addressed by disclosing how the information will be used to the consumer in a privacy notice. See Regulation P, 12 C.F.R. §1016.6. The commission and the OCCC also disagree with Panacea Lending's suggestion to use a regulatory "safe harbor" under which requests from a licensed property tax lender would be presumed valid. It is a prudent data security practice for lenders to verify incoming requests before releasing a borrower's sensitive financial transaction information.

In its official comment on the rule review, Panacea Lending addressed additional issues that were not ultimately included in the proposed or adopted rule amendments. Panacea Lending also raised these issues in its precomment on the proposed amendments, and in its testimony at the August 15 and October 24 commission meetings. TPTLA's official comment on the proposed amendments included responses to the issues raised by Panacea Lending.

First, Panacea Lending's comments recommend mandatory compliance procedures requiring property tax lenders to conduct yearly internal reviews of residential property tax loans to determine whether borrowers are subject to homestead exemptions for being older than 65 or having a disability, and a requirement that property tax lenders send notices to borrowers who are subject to exemptions, with the notice confirming the exemption or deferment and explaining how the property owner may apply for it. In a supplement to the original comment, Panacea Lending suggests requiring additional documents at closing, as well as a disclosure to be read aloud to the borrower by a notary, asking about disabilities and whether the borrower is the surviving spouse of a first responder, as well as a required disclosure to be provided when a property tax lender is prohibited from making a loan. Panacea Lending cites Texas Attorney General Opinion No. GA-0787 (2010), in which the attorney general found that the Texas Tax Code prohibits a property tax lender from foreclosing on a property owner who has attained the age of 65 and filed a deferment of taxes. TPTLA's official comment argues that existing Texas law at Texas Tax Code, §33.06 and §33.065 (among other provisions) already prohibit originating property tax loans for homeowners who qualify for age exemptions. TPTLA also asserts that licensed lenders follow stringent procedures to prevent these loans, including cross-referencing dates of birth and county appraisal records, and that there is no evidence of widespread non-compliance. Therefore, TPTLA argues that Panacea Lending's proposal is redundant and unnecessary.

Although the Tax Code's foreclosure requirements and prohibitions are an important compliance issue for property tax lenders, the commission and the OCCC disagree with the rule amendments proposed by Panacea Lending. The suggested amendments go significantly beyond the Tax Code's statutory requirements, may require property tax lenders to provide legal advice to borrowers, and may not be possible to fully implement in practice. For example, it is unclear how a property tax lender can determine, from a review of its files, whether a borrower currently has a disability making the borrower eligible for a deferment or exemption. Some of the disclosures described in the comment may be a prudent business practice for property tax lenders, but the prescriptive nature of the suggested disclosures goes beyond the intended scope of the rules in 7 TAC Chapter 89.

Second, Panacea Lending's comments recommend amending advertising rules to require the word "lender" to appear on all marketing pieces. Panacea Lending argues that this change is necessary to prevent misleading advertising. TPTLA's official comment responds that false and misleading advertising are already addressed by existing provisions and that the change proposed by Panacea Lending is unnecessary.

The rule at 7 TAC §89.208 (relating to Advertising) already prohibits false, deceptive, or misleading advertising; requires disclosure of the name of the property tax lender; and prohibits advertisements resembling government documents, among other advertising requirements. The rule at 7 TAC §89.507 (relating to Permissible Changes) allows property tax lenders to revise disclosures to use the term "transferee" for "property tax lender," and to use the term "tax lien transfer" for "property tax loan." The commission and the OCCC believe that Panacea Lending's suggested change requiring the word "lender" is unnecessary, given the existing advertising requirements and the alternative terminology for the transaction used in Texas Tax Code, Chapter 32.

Third, Panacea Lending's comments recommend amending 7 TAC §89.601 (relating to Fees for Closing Costs) to adjust the maximum closing costs for a residential property tax loan. Currently, 7 TAC §89.601 provides a general maximum of $900 for closing costs, plus up to $100 for each additional parcel of property past the first parcel, plus reasonable fees for certain direct costs to address title defects. The comment recommends adjusting the maximum to $1,500, indexed annually to inflation using the Consumer Price Index, based on increased costs of staffing, technology, and insurance. TPTLA's official comment opposes changing this maximum fee, arguing that the current rule protects consumers, that technological efficiencies have offset inflationary pressure, and that raising the maximum would invite high-fee, short-term lending.

The commission and the OCCC recognize that certain costs have increased for lenders. However, the commission and the OCCC believe that the $900 maximum (plus additional amounts for certain transaction) remains a fair maximum for lenders in relation to typical residential property tax loan amounts (which averaged $21,399 in calendar year 2024). The commission and the OCCC have not received sufficient information to support raising the maximum closing costs at this time.

Fourth, Panacea Lending's comments recommend adding a requirement for a property tax lender to obtain a signed loan application, and to provide a nonbinding pre-closing disclosure with a 48-hour waiting period for the property tax loan to be closed. Panacea Lending argues that this is necessary because borrowers may receive loan terms without a written record of what was actually offered, preventing borrowers from comparison shopping. TPTLA's official comment responds that these additional requirements are unnecessary because existing rules already required timely, signed pre-closing disclosures of transaction terms, and require lenders to maintain records of loan applications and disclosures.

Regarding the signed loan application, the commission and the OCCC believe that this requirement is unnecessary, because the recordkeeping rule at 7 TAC §89.207(3)(A)(ii) (relating to Files and Records Required) already requires property tax lenders to maintain a transaction file that includes the application and any written or recorded information used in evaluating the application. Regarding a nonbinding pre-closing disclosure and 48-hour waiting period, the commission and the OCCC believe that the Panacea Lending's suggested changes go beyond statutory requirements and the intended scope of the rules. Property tax loans are already subject to pre-closing disclosure requirements under Texas Tax Code, §32.06(a-4)(1) and 7 TAC §89.504 (relating to Requirements for Disclosure Statement to Property Owner). The pre-closing disclosure includes key loan terms, and lenders are required to amend disclosures promptly if they are inaccurate. See 7 TAC §89.504(c)(3). In addition, residential property tax loans are subject to a three-day right of rescission under Texas Tax Code, §32.06(d-1).

Fifth, Panacea Lending's comments recommend amending the rule at 7 TAC §89.802 (regarding Payoff Statements) for payoff statements that a property tax lender provides to certain lienholders. Panacea Lending suggests adding information about delinquent payments, late fees, and tax deferrals, in order to ensure that borrowers are informed about these items. TPTLA's official comment responds that current rules already require comprehensive payoff statements under §89.802 (including unpaid principal balance, accrued interest, additional fees with a description of each fee, and total payoff amount), and that the proposed changes would add unnecessary complexity, increasing administrative costs without improving borrower outcomes.

The commission and the OCCC disagree with Panacea Lending's suggested changes to 7 TAC §89.802. Unlike the payoff statements described in the adopted new rule at §89.806, payoff statements under §89.802 are primarily provided to other lienholders and would not achieve the intended effect of informing borrowers.

Sixth, Panacea Lending's comments recommend that trade organizations should be required to publicly disclose their meetings with the OCCC 60 days in advance. The comments also suggest that within 10 business days after a meeting with the OCCC, a trade organization should be required to disclose the date, time, and location of the meeting; the name of the hosting organization or sponsor; names and titles of all OCCC personnel in attendance; names and titles of property tax lenders' representatives in attendance; agenda topics or discussion summaries; copies of presentation slides shared by or with the OCCC; names of industry presenters; and a summary that clearly states each topic discussion. The comment argues that this is necessary to address "unequal access" and a "perception of bias." TPTLA disagrees with this suggestion, arguing that TPTLA has a record of compliance and ethical conduct, and has built a collaborative relationship with the OCCC rooted in transparency and shared objectives.

The commission and the OCCC disagree with Panacea Lending's suggestion. The OCCC fully complies with government transparency requirements and strives to follow an open process that makes rules and guidance available to stakeholders. The OCCC generally meets with stakeholders on request, whether or not they are connected to a trade association. Panacea Lending's suggestions would unnecessarily impair the OCCC's communications with stakeholders and inappropriately single out trade associations as opposed to other stakeholders.

Seventh, Panacea Lending's comments recommend amending pre-closing disclosure requirements so that the requirements are uniform for residential property tax loans and commercial property tax loans, requiring commercial property tax lenders to disclose an NMLS ID number and additional loan calculations. Currently, the rule at 7 TAC §89.506 (relating to Disclosures) provides distinct pre-closing disclosure forms for residential and commercial property tax loans. TPTLA's official comment responds that these changes are inappropriate because Texas law differentiates between residential and commercial property tax loans in structure and borrower protections, and that merging the forms would create confusion and compliance risk.

The commission and the OCCC disagree with Panacea Lending's suggestion to merge the disclosures and require commercial lenders to provide residential disclosures. There are significant differences between residential property tax loans and commercial property tax loans, and these differences warrant distinct disclosures. For example, residential property tax loans are subject to Texas Finance Code, Chapter 180, which requires the individual residential mortgage loan originator to hold a license in NMLS, while commercial property tax loans are not subject to this requirement (meaning the individual originator of a commercial property tax loan might not have an NMLS ID). Also, under Texas Finance Code §351.0021, a prepayment penalty is authorized for commercial property tax loans but not residential property tax loans, and this distinction is reflected in the disclosures at 7 TAC §89.506.

Eighth, Panacea Lending's precomment requests clarification on "the source, scope, and authority of any limitation on the number of rules the OCCC may consider or advance during this rulemaking cycle." To clarify, there is no specific numerical limitation on how many rules can be addressed in a rule review. Rather, the scope of the commission's rulemaking authority and the OCCC's authority is limited by statute. The Finance Commission may only adopt rules to implement applicable statutory provisions (in this case, Texas Finance Code, Chapter 351 and Texas Tax Code, Chapter 32). To minimize regulatory burden, the OCCC takes a restrained approach to regulation and works to ensure that rules are limited to what is necessary to enforce and administer the statute. The OCCC carefully considers this approach when presenting rule actions to the commission. The OCCC believes that the current adoption of amendments to 7 TAC Chapter 89 supports this approach.

Ninth, Panacea Lending's precomment expresses concerns about whether there was sufficient advance notice of the commission's and OCCC's reasons for not adopting Panacea Lending's proposed changes. The commission's and OCCC's reasons were included in the meeting materials posted in advance of the commission's meeting on October 24, 2025. Panacea Lending had an opportunity to review this material before testifying at the October 24 meeting. The commission and the OCCC provided sufficient formal responses to comments as required by statute under Texas Government Code, §2001.033 and §2001.039, in addition to providing numerous additional opportunities for informal stakeholder feedback to support a transparent rulemaking process.

SUBCHAPTER B. AUTHORIZED ACTIVITIES

The rule changes are adopted under Texas Finance Code, §351.007, which authorizes the commission to adopt rules to ensure compliance with Texas Finance Code, Chapter 351, and Texas Tax Code, §32.06 and §32.065. The rule changes are also adopted under Texas Finance Code, §14.109, which authorizes the OCCC to require that a person submit information through NMLS if the information is required under a rule adopted under Texas Finance Code, Chapter 351. In addition, Texas Finance Code, §11.304 authorizes the commission to adopt rules to ensure compliance with Texas Finance Code, Title 4.

The statutory provisions affected by the adoption are contained in Texas Finance Code, Chapter 351 and Texas Tax Code, Chapter 32.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 12, 2025.

TRD-202504620

Matthew Nance

General Counsel

Office of Consumer Credit Commissioner

Effective date: January 1, 2026

Proposal publication date: November 7, 2025

For further information, please call: (512) 936-7660

SUBCHAPTER C. APPLICATION PROCEDURES

The rule changes are adopted under Texas Finance Code, §351.007, which authorizes the commission to adopt rules to ensure compliance with Texas Finance Code, Chapter 351, and Texas Tax Code, §32.06 and §32.065. The rule changes are also adopted under Texas Finance Code, §14.109, which authorizes the OCCC to require that a person submit information through NMLS if the information is required under a rule adopted under Texas Finance Code, Chapter 351. In addition, Texas Finance Code, §11.304 authorizes the commission to adopt rules to ensure compliance with Texas Finance Code, Title 4.

The statutory provisions affected by the adoption are contained in Texas Finance Code, Chapter 351 and Texas Tax Code, Chapter 32.

§89.301. Definitions.

Words and terms used in this chapter that are defined in Texas Finance Code, Chapter 351 have the same meanings as defined in Chapter 351. The following words and terms, when used in this chapter, will have the following meanings, unless the context clearly indicates otherwise.

(1) Key individual--An individual owner, officer, director, or employee with a substantial relationship to the lending business of an applicant or licensee. The following are key individuals:

(A) any individual who is a direct owner of 10% or more of an applicant or licensee;

(B) any individual who is a control person or executive officer of an applicant or licensee, including an individual who has the power to direct management or policies of a company (e.g., president, chief executive officer, general partner, managing member, vice president, treasurer, secretary, chief operating officer, chief financial officer); and

(C) an individual designated as a key individual where necessary to fairly assess the applicant or licensee's financial responsibility, experience, character, general fitness, and sufficiency to command the confidence of the public and warrant the belief that the business will be operated lawfully and fairly.

(2) Net assets--The total value of acceptable assets used or designated as readily available for use in the business, less liabilities, other than those liabilities secured by unacceptable assets. Unacceptable assets include, but are not limited to, goodwill, unpaid stock subscriptions, lines of credit, notes receivable from an owner, property subject to the claim of homestead or other property exemption, and encumbered real or personal property to the extent of the encumbrance. Generally, assets are available for use if they are readily convertible to cash within 10 business days.

(3) NMLS--The Nationwide Multistate Licensing System.

§89.302. Filing of New Application.

(a) NMLS. In order to submit a property tax lender license application, an applicant must submit a complete, accurate, and truthful license application through NMLS (or a successor system designated by the OCCC), using the current form prescribed by the OCCC. An application is complete when it conforms to the OCCC's written instructions and necessary fees have been paid. The OCCC has made application checklists available through NMLS, outlining the necessary information for a license application.

(b) Company license application. A company license application will include the following information and any other information listed in the OCCC's written instructions:

(1) A company form including the name of the applicant entity, contact information, registered agent, location of books and records, bank account information, legal status, and responses to disclosure questions.

(2) An individual form for each key individual, including name, contact information, and responses to disclosure questions.

(3) A business operating plan describing the source of consumers, purpose of loans, size of loans, and source of working capital.

(4) A management chart showing the applicant's divisions, officers, and managers.

(5) An organizational chart if the applicant is owned by another entity or entities, or has subsidiaries or affiliated entities.

(6) A statement of experience detailing prior experience relevant to the license sought.

(7) A certificate of formation or other formation document.

(8) Any assumed names or other trade names that the applicant will use, and an assumed name certificate for each assumed name or other trade name.

(9) Franchise tax account information showing that the applicant entity is authorized to do business in Texas.

(10) Financial statement and supporting financial information complying with generally accepted accounting principles (GAAP). The OCCC may require a bank confirmation to confirm account balance information with financial institutions.

(A) If a financial statement is unaudited, then it should be dated no earlier than 60 days before the application date.

(B) If a financial statement is audited, then it should be dated no earlier than one year before the application date.

(11) Loan forms that the applicant intends to use, including disclosures and loan contracts.

(c) Branch license application. A branch license application will include the following information and any other information listed in the OCCC's written instructions:

(1) A branch form including the address of the branch, contact details, and business activities.

(2) Any assumed name or other trade name that the applicant will use, and an assumed name certificate for each assumed name or other trade name.

(3) A financial statement and supporting financial information, as described by subsection (b)(10) of this section.

(4) For a license application involving a transfer of ownership, documentation of the transfer of ownership as described by §89.303 of this title

(d) Supplemental information. The OCCC may require additional, clarifying, or supplemental information or documentation as necessary or appropriate to determine that an applicant meets the licensing requirements of Texas Finance Code, Chapter 351.

(e) Amendments to pending application. An applicant must immediately amend a pending application if any information changes requiring a materially different response from information provided in the original application.

§89.303. Transfer of License; New License Application on Transfer of Ownership.

(a) Purpose. This section describes the license application requirements when a licensed entity transfers ownership of the entity. If a transfer of ownership occurs, the transferee must submit a new license application on transfer of ownership under this section.

(b) Definitions. The following words and terms, when used in this section, will have the following meanings:

(1) License transfer--A sale, assignment, or transfer of a property tax lender license.

(2) Permission to operate--A temporary authorization from the OCCC, allowing a transferee to operate under a transferor's license while final approval is pending for a license transfer application or a new license application on transfer of ownership.

(3) Transfer of ownership--Any purchase or acquisition of control of a licensed entity (including acquisition by gift, devise, or descent), or a substantial portion of a licensed entity's assets, where a substantial change in management or control of the business occurs. The term does not include a change in proportionate ownership that results in the exact same owners still owning the business, unless an owner that previously held less than 10% obtains an interest of 10% or more Transfer of ownership includes the following:

(A) an existing owner of a sole proprietorship relinquishes that owner's entire interest in a license or an entirely new entity has obtained an ownership interest in a sole proprietorship license;

(B) any transfer of a substantial portion of the assets of a licensed entity under which a new entity controls business at a licensed location; and

(C) any other purchase or acquisition of control of a licensed entity, or a substantial portion of a licensed entity's assets, where a substantial change in management or control of the business occurs.

(4) Transferee--The entity that controls business at a licensed location after a transfer of ownership.

(5) Transferor--The licensed entity that controls business at a licensed location before a transfer of ownership.

(c) License transfer approval. No property tax lender license may be sold, transferred, or assigned without the written approval of the OCCC, as provided by Texas Finance Code, §351.163. To transfer a license, a transferor may request surrender of its license after the OCCC approves the transferee's new license application on transfer of ownership. A license transfer is complete when the OCCC has approved the transferee's new license application and the transferor's license surrender.

(d) Timing. No later than 30 days after the event of a transfer of ownership, the transferee must file a complete new license application on transfer of ownership in accordance with subsection (e). A transferee may file an application before this date.

(e) Application requirements.

(1) Generally. This subsection describes the application requirements for a new license application on transfer of ownership. A transferee must submit the application in a format prescribed by the OCCC. The OCCC may accept prescribed alternative formats to facilitate multistate uniformity of applications or in order to accept approved electronic submissions. The transferee must pay appropriate fees in connection with the application.

(2) Documentation of transfer of ownership. The application must include documentation evidencing the transfer of ownership. The documentation should include one or more of the following:

(A) a copy of the asset purchase agreement when only the assets have been purchased;

(B) a copy of the purchase agreement or other evidence relating to the acquisition of the equity interest of a licensee that has been purchased or otherwise acquired;

(C) any document that transferred ownership by gift, devise, or descent, such as a probated will or a court order; or

(D) any other documentation evidencing the transfer event.

(3) Application information for new licensee. If the transferee does not hold a property tax lender license at the time of the application, then the application must include the information required for new license applications under §89.302 of this title (relating to Filing of New Application). The instructions in §89.302 of this title apply to these filings.

(4) Application information for transferee that holds a license. If the transferee holds a property tax lender license at the time of the application, then the application must include amendments to the transferee's original license application describing the information that is unique to the transfer event, including disclosure questions, key individuals, and a new financial statement, as provided in §89.302 of this title. The instructions in §89.302 of this title apply to these filings. The responsible person at the new location must file a personal affidavit, personal questionnaire, and employment history, if not previously filed. Other information required by §89.302 of this title need not be filed if the information on file with the OCCC is current and valid.

(5) Request for permission to operate. The application may include a request for permission to operate. The request must be in writing and signed by the transferor and transferee. The request must include all of the following:

(A) a statement by the transferor granting authority to the transferee to operate under the transferor's license while final approval of the application is pending;

(B) an acknowledgement that the transferor and transferee each accept responsibility to any consumer and to the OCCC for any acts performed under the license while the permission to operate is in effect; and

(C) if the application is a new license application on transfer of ownership, an acknowledgement that the transferor will immediately surrender or inactivate its license if the OCCC approves the application.

(f) Permission to operate. If the application described by subsection (e) includes a request for permission to operate and all required information, and the transferee has paid all fees required for the application, then the OCCC may issue a permission to operate to the transferee. A request for permission to operate may be denied even if the application contains all of the required information. The denial of a request for permission to operate does not create a right to a hearing. If the OCCC grants a permission to operate, the transferor must cease operating under the authority of the license. Two companies may not simultaneously operate under a single license. A permission to operate terminates if the OCCC denies an application described by subsection (e).

(g) Transferee's authority to engage in business. If a transferee has filed a complete application including a request for permission to operate as described by subsection (e), by the deadline described by subsection (d), then the transferee may engage in business as a property tax lender. However, the transferee must immediately cease doing business if the OCCC denies the request for permission to operate or denies the application. If the OCCC denies the application, then the transferee has a right to a hearing on the denial, as provided by §89.307(d) of this title (relating to Processing of Application).

(h) Responsibility.

(1) Responsibility of transferor. Before the transferee begins performing property tax lending activity under a license, the transferor is responsible to any consumer and to the OCCC for all property tax lending activity performed under the license.

(2) Responsibility of transferor and transferee. If a transferee begins performing property tax lending activity under a license before the OCCC's final approval of an application described by subsection (e), then the transferor and transferee are each responsible to any consumer and to the OCCC for activity performed under the license during this period.

(3) Responsibility of transferee. After the OCCC's final approval of an application described by subsection (e) of this section, the transferee is responsible to any consumer and to the OCCC for all property tax lending activity performed under the license. The transferee is responsible for any transactions that it purchases from the transferor. In addition, if the transferee receives a license transfer, then the transferee's responsibility includes all activity performed under the license before the license transfer.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 12, 2025.

TRD-202504621

Matthew Nance

General Counsel

Office of Consumer Credit Commissioner

Effective date: January 1, 2026

Proposal publication date: November 7, 2025

For further information, please call: (512) 936-7660

The rule changes are adopted under Texas Finance Code, §351.007, which authorizes the commission to adopt rules to ensure compliance with Texas Finance Code, Chapter 351, and Texas Tax Code, §32.06 and §32.065. The rule changes are also adopted under Texas Finance Code, §14.109, which authorizes the OCCC to require that a person submit information through NMLS if the information is required under a rule adopted under Texas Finance Code, Chapter 351. In addition, Texas Finance Code, §11.304 authorizes the commission to adopt rules to ensure compliance with Texas Finance Code, Title 4.

The statutory provisions affected by the adoption are contained in Texas Finance Code, Chapter 351 and Texas Tax Code, Chapter 32.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 12, 2025.

TRD-202504622

Matthew Nance

General Counsel

Office of Consumer Credit Commissioner

Effective date: January 1, 2026

Proposal publication date: November 7, 2025

For further information, please call: (512) 936-7660

SUBCHAPTER D. LICENSE

The rule changes are adopted under Texas Finance Code, §351.007, which authorizes the commission to adopt rules to ensure compliance with Texas Finance Code, Chapter 351, and Texas Tax Code, §32.06 and §32.065. The rule changes are also adopted under Texas Finance Code, §14.109, which authorizes the OCCC to require that a person submit information through NMLS if the information is required under a rule adopted under Texas Finance Code, Chapter 351. In addition, Texas Finance Code, §11.304 authorizes the commission to adopt rules to ensure compliance with Texas Finance Code, Title 4.

The statutory provisions affected by the adoption are contained in Texas Finance Code, Chapter 351 and Texas Tax Code, Chapter 32.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 12, 2025.

TRD-202504623

Matthew Nance

General Counsel

Office of Consumer Credit Commissioner

Effective date: January 1, 2026

Proposal publication date: November 7, 2025

For further information, please call: (512) 936-7660

The rule changes are adopted under Texas Finance Code, §351.007, which authorizes the commission to adopt rules to ensure compliance with Texas Finance Code, Chapter 351, and Texas Tax Code, §32.06 and §32.065. The rule changes are also adopted under Texas Finance Code, §14.109, which authorizes the OCCC to require that a person submit information through NMLS if the information is required under a rule adopted under Texas Finance Code, Chapter 351. In addition, Texas Finance Code, §11.304 authorizes the commission to adopt rules to ensure compliance with Texas Finance Code, Title 4.

The statutory provisions affected by the adoption are contained in Texas Finance Code, Chapter 351 and Texas Tax Code, Chapter 32.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 12, 2025.

TRD-202504624

Matthew Nance

General Counsel

Office of Consumer Credit Commissioner

Effective date: January 1, 2026

Proposal publication date: November 7, 2025

For further information, please call: (512) 936-7660

SUBCHAPTER H. PAYOFF STATEMENTS

The rule changes are adopted under Texas Finance Code, §351.007, which authorizes the commission to adopt rules to ensure compliance with Texas Finance Code, Chapter 351, and Texas Tax Code, §32.06 and §32.065. The rule changes are also adopted under Texas Finance Code, §14.109, which authorizes the OCCC to require that a person submit information through NMLS if the information is required under a rule adopted under Texas Finance Code, Chapter 351. In addition, Texas Finance Code, §11.304 authorizes the commission to adopt rules to ensure compliance with Texas Finance Code, Title 4.

The statutory provisions affected by the adoption are contained in Texas Finance Code, Chapter 351 and Texas Tax Code, Chapter 32.

§89.806. Payoff Request from Borrower.

(a) Generally. A borrower has a right to pay off a property tax loan early, consistent with the prohibition on prepayment penalties in Texas Tax Code, § 32.065(d), and Texas Finance Code, §343.205 and §351.0021(a)(9). A property tax lender may not "lock out" a borrower or prevent a borrower from paying off the loan early. The borrower's right to pay off the loan early includes the right to authorize another person to pay off the property tax loan.

(b) Payoff request process. If a property tax lender obtains a borrower's authorization to pay off a property tax loan held by an existing property tax lender, then the parties should take these steps.

(1) The authorized property tax lender should obtain a signed written statement from the borrower authorizing the lender to pay off the property tax loan. If the signature is electronic, then the lender must maintain a certificate of authenticity or other proof of the signature in accordance with standards for electronic signatures.

(2) The authorized property tax lender should send a request for a payoff statement to the existing property tax lender. The request should include the borrower's signed authorization, and should include the certificate of authenticity or other proof of the signature. The request should include the borrower's name, the authorized person's name, a description of the property, and reasonable instructions for where to send the payoff statement.

(3) If the request includes the information necessary to complete a payoff statement, then the existing property tax lender should respond with a payoff statement to the authorized property tax lender within seven business days after the existing property tax lender receives the complete request. The payoff statement should include accurate payoff information, and the borrower and the authorized lender should be able to rely on it for a reasonable period of time. The payoff statement should include reasonable instructions for paying off the property tax loan. If the authorized property tax lender's request does not include the information described by paragraph (2) of this subsection, then the existing property tax lender should notify the authorized property tax lender of the deficiency within a reasonable period of time.

(4) The authorized property tax lender may pay off the existing property tax loan as described in the payoff statement.

(5) Once the property tax lender has received the payoff amount, the property tax lender must promptly assign the property tax loan to the authorized person or release the property tax lender's lien on the property.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 12, 2025.

TRD-202504625

Matthew Nance

General Counsel

Office of Consumer Credit Commissioner

Effective date: January 1, 2026

Proposal publication date: November 7, 2025

For further information, please call: (512) 936-7660