Bill Text: TX SB1334 | 2013-2014 | 83rd Legislature | Engrossed
Bill Title: Relating to accounting and payoff statements for certain seller-financed residential loans.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Engrossed - Dead) 2013-05-15 - Committee report sent to Calendars [SB1334 Detail]
Download: Texas-2013-SB1334-Engrossed.html
By: Lucio | S.B. No. 1334 |
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relating to accounting and payoff statements for certain | ||
seller-financed residential loans. | ||
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 that: | ||
(1) is not a federally related mortgage loan, as | ||
defined by 12 U.S.C. Section 2602; and | ||
(2) is secured by a purchase money lien on residential | ||
real property that was not the seller's principal residence at the | ||
time of sale. | ||
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. | ||
Sec. 343.303. PAYMENT CONSIDERED TIMELY. In a proceeding | ||
related to a loan to which this subchapter applies, 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. |