What Is the Difference Between Texas SML and OCCC?

The difference between the Texas SML and the OCCC comes down to what kind of loan you have. The Department of Savings and Mortgage Lending (SML) regulates residential mortgage lenders, mortgage servicers, and state-chartered savings banks. The Office of Consumer Credit Commissioner (OCCC) regulates almost everything else on the consumer credit side, including auto loans, payday and title lenders, pawnshops, property tax lenders, and in-house retail financing. Both agencies sit under the Finance Commission of Texas and share an address in Austin, but they handle entirely separate industries, and sending a complaint to the wrong one slows everything down.

When Your Lender Falls Under the SML

If a company is involved in your home loan, the SML is almost certainly the right agency. Its jurisdiction follows a residential mortgage from the moment it’s originated through the life of the servicing relationship.

Residential mortgage loan originators and mortgage companies must be licensed under Texas Finance Code Chapter 156.1Justia. Texas Finance Code Title 3, Subtitle E, Chapter 156 – Residential Mortgage Loan Companies Mortgage bankers and mortgage companies also have to follow conduct standards under Chapter 157 covering how they handle loan transactions, advertising, and borrower communications.2State of Texas. Texas Finance Code Section 157.002 – Definitions

Mortgage servicers — the companies that collect your payment, manage your escrow, or run loss mitigation — register with the SML under Chapter 158.3Justia. Texas Finance Code Title 3, Subtitle E, Chapter 158 – Residential Mortgage Loan Servicers That requirement applies even when a master servicer subcontracts the actual payment collection to another company; both have to be registered.4Legal Information Institute. Texas Admin Code 7 Section 58.100 – Registration Requirements The SML also examines state-chartered savings banks for financial health and fiduciary compliance under Texas Finance Code Chapters 11 through 13.

When Your Lender Falls Under the OCCC

The OCCC covers consumer credit that is not a residential mortgage. Its authority under Texas Finance Code Chapter 14 reaches six categories of licensed industries and four categories of registered industries, which together cover most non-mortgage consumer lending in Texas.5Justia. Texas Finance Code Title 2, Chapter 14 – Consumer Credit Commissioner6Texas Office of Consumer Credit Commissioner. Regulated Industries

The lenders and companies the OCCC regulates include:

How to Tell Which Agency Handles Your Issue

Start with the product, not the company name. Many lenders operate under brand names that don’t make it obvious what kind of credit they’re extending. If the loan is secured by your home or involves anyone who arranged, originated, or now services a residential mortgage, you want the SML. If the loan is secured by your car, your paycheck, pawned property, or nothing at all, or if the debt is being managed or settled on your behalf, you want the OCCC.

License numbers help confirm the routing. Most regulated businesses list their Texas license on their website, in their loan documents, or at the point of sale, and that license will trace back to one agency or the other.

Filing a Complaint and What Each Agency Can Do

Both agencies take complaints online and by mail at 2601 North Lamar Boulevard, Austin, TX 78705.10Texas Office of Consumer Credit Commissioner. Contact Us The SML also accepts fax. All SML complaints have to be in writing and signed; the department will not take them by phone or by unsigned email.11Department of Savings and Mortgage Lending. Consumer Complaint Form The OCCC runs a consumer assistance helpline at 800-538-1579 for questions before you file.12Texas Office of Consumer Credit Commissioner. File a Complaint

When you file, pull together the company’s legal name, any license number you can find, a chronological account of what happened, and copies of contracts, statements, and correspondence. The SML will acknowledge receipt within 10 business days and, if an investigation opens, send a copy of the complaint to the business.13Department of Savings and Mortgage Lending. Complaint Process Information and Complaint Form The OCCC’s process is similar.12Texas Office of Consumer Credit Commissioner. File a Complaint

Both agencies can act on what they find. The SML can issue cease-and-desist orders, suspend or revoke licenses, require consumer restitution, and assess administrative penalties, with grounds that include fraud-related criminal convictions, unlicensed activity, failure to cooperate with an exam, and even misleading advertising. The agency also maintains a recovery fund that can compensate consumers harmed by a licensed mortgage broker.14Department of Savings and Mortgage Lending. Enforcement The OCCC can deny, suspend, or revoke licenses based on criminal history, incomplete applications, or a finding that the licensee’s character and fitness do not warrant public confidence; for pawnshop licenses specifically, a felony conviction resulting in imprisonment triggers automatic revocation.15Legal Information Institute. Texas Admin Code 7 Section 85.601 – Denial, Suspension, or Revocation Both run routine examinations of their licensees, which means a documented complaint can surface in future exam findings even when it does not immediately produce an enforcement order.