Bill Text: TX HB2425 | 2013-2014 | 83rd Legislature | Comm Sub

---

Bill Title: Relating to the form, content, and provision of payoff statements for property tax loans.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2013-05-01 - Committee report sent to Calendars [HB2425 Detail]

Download: Texas-2013-HB2425-Comm_Sub.html

---

83R22784 DDT-F
By: Martinez H.B. No. 2425
Substitute the following for H.B. No. 2425:
By: Hilderbran C.S.H.B. No. 2425

A BILL TO BE ENTITLED
AN ACT
relating to the form, content, and provision of payoff statements
for property tax loans.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 32.06, Tax Code, is amended by amending
Subsection (a-4) and adding Subsections (a-5) and (a-6) to read as
follows:
(a-4) The Finance Commission of Texas shall:
(1) prescribe the form and content of an appropriate
disclosure statement to be provided to a property owner before the
execution of a tax lien transfer;
(2) adopt rules relating to the reasonableness of
closing costs, fees, and other charges permitted under this
section; [and]
(3) by rule prescribe the form and content of the sworn
document under Subsection (a-1) and the certified statement under
Subsection (b); and
(4) by rule prescribe the form and content of a request
a lender with an existing recorded lien on the property must use to
request a payoff statement and the transferee's response to the
request, including the period within which the transferee must
respond.
(a-5) At the time the transferee provides the disclosure
statement required by Subsection (a-4)(1), the transferee must also
describe the type and approximate cost range of each additional
charge or fee that the property owner may incur in connection with
the transfer.
(a-6) Notwithstanding Subsection (f-3), a lender described
by Subsection (a-4)(4) may request a payoff statement before the
tax loan becomes delinquent. The Finance Commission of Texas by
rule shall require a transferee who receives a request for a payoff
statement to deliver the requested payoff statement on the
prescribed form within a period prescribed by finance commission
rule. The prescribed period must allow the transferee at least
seven business days after the date the request is received to
deliver the payoff statement. The consumer credit commissioner may
assess an administrative penalty under Subchapter F, Chapter 14,
Finance Code, against a transferee who wilfully fails to provide
the payoff statement as prescribed by finance commission rule.
SECTION 2. As soon as practicable after the effective date
of this Act, the Finance Commission of Texas shall adopt rules
necessary to implement the changes in law made by this Act.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2013.