Announcement: New Information Technology and Cybersecurity Examination Program
Announcement: New Information Technology and Cybersecurity Examination Program
The Department of Savings and Mortgage Lending (SML) has launched an Information Technology (IT) and Cybersecurity Examination Program to strengthen the protection of consumer information and enhance supervisory oversight of regulated entities’ management of IT and cybersecurity risk. SML has begun conducting specialized IT and Cybersecurity examinations to assess regulated entities’ compliance with applicable federal and state laws and regulations, and evaluate the adequacy and effectiveness of regulated entities’ information security programs.
Who is affected?
Under 7 Texas Administrative Code (TAC) §§ 56.204 (applicable to mortgage companies) and 57.204 (applicable to mortgage bankers), regulated entities must develop, implement, and maintain an information security program appropriate to the entity’s size and complexity, the nature and scope of activities, and the sensitivity of any customer information at issue.
What is Changing?
- In addition to the foundational information security program review conducted during mortgage origination examinations, SML will conduct stand-alone IT and Cybersecurity examinations to facilitate an in-depth assessment of the implementation and effectiveness of information security controls required under the FTC’s Standards for Safeguarding Customer Information Rule.
- Stand-alone IT and Cybersecurity examinations will be scheduled based on a risk focused approach. Identified risk factors will play a central role in prioritizing examination scheduling, including the following:
- entity’s size and complexity;
- volume;
- the nature and criticality of products, services, and business operations;
- results of prior examinations;
- consumer complaints; and
- reported cybersecurity incidents and data breaches.
- Except for the reimbursement of actual travel cost incurred for onsite examinations outside of Texas, SML does not impose or collect a fee for an examination.
SML reminds regulated entities that failure to maintain confidentiality, integrity, and availability of consumer information can result in direct harm to consumers, as well as operational and reputational risk to regulated entities.
Questions?
For more information or questions, please contact SML by email at or visit our website (sml.texas.gov).
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