Bill Text: TX HB2864 | 2013-2014 | 83rd Legislature | Introduced
Bill Title: Relating to requirements for mortgage servicers in connection with loans for the purchase of residential property.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-04-22 - Left pending in committee [HB2864 Detail]
Download: Texas-2013-HB2864-Introduced.html
| 83R10376 NC/CLG-D | ||
| By: Carter | H.B. No. 2864 | |
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| relating to requirements for mortgage servicers in connection with | ||
| loans for the purchase of residential property. | ||
| 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. REQUIREMENTS FOR MORTGAGE | ||
| SERVICERS OF HOME LOANS | ||
| Sec. 343.301. DEFINITION. In this subchapter, "mortgage | ||
| servicer" has the meaning assigned by Section 51.0001, Property | ||
| Code. | ||
| Sec. 343.302. SINGLE POINT OF CONTACT FOR HOME LOAN | ||
| INQUIRIES. (a) Not later than the 30th day after the date a | ||
| mortgage servicer begins servicing a home loan, the mortgage | ||
| servicer shall provide to the borrower in writing the name and | ||
| telephone number of a person employed by the mortgage servicer who | ||
| will serve as the borrower's single point of contact within the | ||
| mortgage servicer's office with respect to all inquiries related to | ||
| the home loan. | ||
| (b) The person serving as the borrower's point of contact | ||
| under Subsection (a) shall ensure that the borrower is properly and | ||
| correctly informed regarding any loan modification plan entered | ||
| into between the mortgage servicer and the borrower or any other | ||
| modification of loan terms. | ||
| Sec. 343.303. NOTICE OF ASSIGNMENT, SALE, OR OTHER TRANSFER | ||
| OF LOAN SERVICING. (a) Except as provided by Subsection (d), a | ||
| mortgage servicer shall notify the borrower in writing of any | ||
| assignment, sale, or other transfer of the servicing of a home loan | ||
| to any other person. | ||
| (b) The notice required by Subsection (a) must contain: | ||
| (1) the effective date of the transfer; | ||
| (2) the name, address, and telephone number of the | ||
| transferee mortgage servicer; | ||
| (3) the name and telephone number of an individual | ||
| employed by, or the office or department of, the transferor | ||
| mortgage servicer that can be contacted by the borrower to answer | ||
| inquiries relating to the transfer of servicing; | ||
| (4) the name and telephone number of an individual | ||
| employed by, or the office or department of, the transferee | ||
| mortgage servicer that can be contacted by the borrower to answer | ||
| inquiries relating to the transfer of servicing; and | ||
| (5) the date on which the transferor mortgage servicer | ||
| who is servicing the mortgage loan before the assignment, sale, or | ||
| other transfer will cease to accept payments relating to the loan | ||
| and the date on which the transferee mortgage servicer will begin to | ||
| accept the payments. | ||
| (c) A transferor mortgage servicer shall provide the notice | ||
| required by Subsection (a) by certified mail, return receipt | ||
| requested, not later than the 15th day before the effective date of | ||
| the assignment, sale, or other transfer of the servicing of the home | ||
| loan. | ||
| (d) A transferor mortgage servicer or transferee mortgage | ||
| servicer is not required to provide notice of an assignment, sale, | ||
| or other transfer of the servicing of a home loan as required by | ||
| this section if the lender provides to the borrower, at settlement | ||
| with respect to the property for the purchase of which the loan is | ||
| made, written notice of the assignment, sale, or other transfer of | ||
| the servicing of the loan and that notice contains the information | ||
| required by Subsection (b). | ||
| Sec. 343.304. LIABILITY FOR CERTAIN VIOLATIONS UNDER THIS | ||
| SUBCHAPTER. (a) A mortgage servicer that violates Section 343.303 | ||
| is liable to the borrower for: | ||
| (1) any actual damages to the borrower as a result of | ||
| the violation; and | ||
| (2) any additional damages the court allows, in the | ||
| case of a pattern or practice of violations of Section 343.303, in | ||
| an amount not to exceed $2,000. | ||
| (b) In addition to the amounts awarded under Subsection (a), | ||
| a mortgage servicer who is liable under this section is liable for | ||
| court costs and reasonable attorney's fees incurred in connection | ||
| with the action. | ||
| SECTION 2. Section 51.002, Property Code, is amended by | ||
| adding Subsection (e-1) to read as follows: | ||
| (e-1) The mortgage servicer shall file an affidavit | ||
| described by Subsection (e) and a copy of the certified mail receipt | ||
| and signature record for the notice sent to the debtor under | ||
| Subsection (d) with the county clerk for recording in the deed | ||
| records. A trustee may not exercise a power of sale under this | ||
| section with respect to real property used as the debtor's | ||
| residence unless the affidavit and the certified mail receipt and | ||
| signature record are filed under this subsection. | ||
| SECTION 3. Section 51.002, Property Code, as amended by | ||
| this Act, applies only to a sale of residential real property for | ||
| which notice of default under that section is provided on or after | ||
| the effective date of this Act. A sale in which notice of default is | ||
| provided before the effective date of this Act is subject to the law | ||
| in effect immediately before that date, and that law is continued in | ||
| effect for that purpose. | ||
| SECTION 4. This Act takes effect January 1, 2014. | ||
