Bill Text: TX HB1441 | 2013-2014 | 83rd Legislature | Introduced
Bill Title: Relating to accounting and payoff statements for certain seller-financed residential loans; providing a penalty.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-05-06 - Left pending in committee [HB1441 Detail]
Download: Texas-2013-HB1441-Introduced.html
| 83R4625 DDT-F | ||
| By: Canales | H.B. No. 1441 | |
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| relating to accounting and payoff statements for certain | ||
| seller-financed residential loans; providing a penalty. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Chapter 343, Finance Code, is amended by adding | ||
| Subchapter D to read as follows: | ||
| SUBCHAPTER D. SELLER-FINANCED RESIDENTIAL LOANS | ||
| Sec. 343.301. APPLICATION. This subchapter applies only to | ||
| a seller-financed loan secured by a purchase money lien on | ||
| residential real property that is not a federally related mortgage | ||
| loan, as defined by 12 U.S.C. Section 2602. | ||
| Sec. 343.302. ANNUAL ACCOUNTING STATEMENT REQUIRED. (a) | ||
| The lender shall provide to the borrower an accounting statement in | ||
| January of each year for the term of the loan. If the lender mails | ||
| the statement to the borrower, the statement must be postmarked not | ||
| later than January 31. | ||
| (b) The accounting statement must include the following | ||
| information: | ||
| (1) the amount paid toward the outstanding balance of | ||
| the loan during the preceding calendar year, including separate | ||
| amounts showing the total amount applied to interest and the total | ||
| amount applied to principal; | ||
| (2) the remaining principal balance owed on the loan; | ||
| (3) the number of payments remaining on the loan; | ||
| (4) the amounts paid to taxing authorities on the | ||
| borrower's behalf if collected by the lender; and | ||
| (5) the amounts paid to insure the property on the | ||
| borrower's behalf if collected by the lender. | ||
| (c) Except as provided by Section 343.304, in addition to | ||
| any other legal and equitable remedy available, a lender under this | ||
| section who fails to comply with this section is liable to a | ||
| borrower who is injured by the violation for: | ||
| (1) a penalty in the amount of $500; | ||
| (2) actual damages; | ||
| (3) court costs; and | ||
| (4) reasonable attorney's fees. | ||
| Sec. 343.303. PAYMENT CONSIDERED TIMELY. In a proceeding | ||
| related to a loan to which this subchapter applies, including an | ||
| action brought under Section 343.302(c), a loan payment is | ||
| considered to have been paid on the due date by the borrower if the | ||
| payment came due during a calendar year for which the lender did not | ||
| provide a required accounting statement to the borrower under | ||
| Section 343.302. | ||
| Sec. 343.304. OTHER PENALTIES AND LIABILITIES NOT | ||
| APPLICABLE. Chapter 349 does not apply to a violation of this | ||
| subchapter. | ||
| SECTION 2. Section 343.106, Finance Code, is amended by | ||
| adding Subsection (h) to read as follows: | ||
| (h) For purposes of providing a payoff statement required | ||
| under this section for a seller-financed loan to which Subchapter D | ||
| applies, a loan payment made to the lender is considered to have | ||
| been paid on the due date by the borrower if the payment came due | ||
| during a calendar year for which the lender did not provide a | ||
| required accounting statement to the borrower under Section | ||
| 343.302. | ||
| SECTION 3. A lender is not required to provide an accounting | ||
| statement required by Section 343.302, Finance Code, as added by | ||
| this Act, before January 1, 2014. | ||
| SECTION 4. This Act takes effect September 1, 2013. | ||
