83R10376 NC/CLG-D
	By: Carter	H.B. No. 2864

	A BILL TO BE ENTITLED
	AN ACT
	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.