How are you planning on complying with the requirement in HB 716 to report fraudulent activity to the attorney general (authorized governmental agency)? Are you going to lower your SAR reporting threshold and simply send in a copy of that or have you decided on something different?

May seem a little of a broad interpretation, but I don't see where this section is limited to mortgage fraud even though I think that is the intent. It says that if you determine or reasonably suspect a fraudulent activity has been committed or is about to be committed you must report that. Fraudulent activity is defined here as, "any act that constitutes a violation of penal law and is part of an attempt or scheme to defraud any person" (emphasis added).

My thought has been to give the same info as a SAR but on some new form yet to be created.

I looked back at the Bill & I think your broad interpretation could be true. I know the intent was to apply to Home Loans, the same as the disclosure part of the bill that ammended Sec 343 the Finance Code, and Sec 343 is titled Home Loans.
BUT the notification portion and definition part of the bill, that defines fraudulent activity, adds Sec 402.031 to the Government Code, and the definition is VERY broad and Sec 402 deals with the Attny Gen & therefore is not limited to Home Loans.
WOW - just when I thought I had this nailed down
You might want to pass on this question to TBA &/or IBAT attorneys.

Can anyone provide me with a link to this bill?

Here is link to the Bill http://www.capitol.state.tx.us/tlodocs/80R/billtext/doc/HB00716F.doc[/url]

Just wanted to follow upon this discussion. Read a publication on the TX Dept. of Banking website yesterday which included the new form we are to use to report Mortgage Fraud to the State. The guidance stated that you are to first file your SAR, then you are to complete the Residentail Mortgage Fraud Report Form. Here's the link to the report form: http://www.banking.state.tx.us/forms/mfreport.pdf

Are you a national bank? The way the statute is worded is confusing to me regarding who must report. 402.031(b) starts off saying "if a person determines...the person shall report..." Then the third sentence starts: "if a financial institution or person volutarily or pursuant to this section reports....the financial institution or person...." Why does it distinguish between financial institution and person in this sentence if the word person in the first two sentences included a "financial institutuion"? Could this be interpreted to mean that the first two sentences are not intended to apply to financial institutions?