81R5933 AJA-F
By: Davis of Dallas H.B. No. 2309
A BILL TO BE ENTITLED
AN ACT
relating to reporting of certain information regarding foreclosure
sales of residential real property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 2306, Government Code, is
amended by adding Section 2306.084 to read as follows:
Sec. 2306.084. MORTGAGE DEFAULT AND FORECLOSURE DATA
COLLECTION AND REPORT. (a) The board shall prescribe the form and
content of the forms to be filed with the county clerk under Section
51.0023, Property Code, and procedures for a county clerk to submit
the data collected under that section to the department.
(b) The form prescribed for submission by a mortgage
servicer under Section 51.0023(a), Property Code, must request
information about the property, the debtor, and other facts
surrounding the foreclosure, including:
(1) the type of lien being foreclosed, as listed in
Section 50, Article XVI, Texas Constitution;
(2) the initial interest rate of the loan;
(3) the origination and maturity dates of the loan;
(4) the initial amount of the debt;
(5) whether the loan allows negative amortization or
allows the payment of interest only;
(6) whether the interest rate could change and, if so,
the minimum and maximum rates, the index used, the amount of the
margin, how often the rate could adjust, how much the rate could
adjust, and the current interest rate being charged;
(7) whether the loan allows for a scheduled payment
that is more than twice as large as the average of earlier scheduled
monthly payments;
(8) whether the loan has a prepayment penalty or a
universal default provision in which it allows for a change in the
interest rate when there is a default by the debtor on any
obligation to the lender or any other lender or there is a decrease
in the debtor's credit score;
(9) the type of default;
(10) demographics of the debtor;
(11) whether the property was the debtor's residence;
(12) the zip code of the property subject to sale; and
(13) any other information the department finds
appropriate to request from the mortgage servicer.
(c) The form prescribed for submission by a purchaser of
residential real property under Section 51.0023(c), Property Code,
must request:
(1) information identifying the property purchased;
(2) the date of the foreclosure sale; and
(3) any other information the department finds
appropriate to request.
(d) The county clerk shall submit the data collected under
Section 51.0023, Property Code, to the department monthly. The
department shall make the data submitted available to the public on
the department's Internet website.
(e) Not later than January 1 of each year, the department
shall submit a report to the governor, lieutenant governor, speaker
of the house of representatives, and attorney general regarding the
data collected under this section. The department shall make the
report required under this subsection available to the public on
the department's Internet website.
SECTION 2. Chapter 51, Property Code, is amended by adding
Section 51.0023 to read as follows:
Sec. 51.0023. DATA COLLECTION. (a) A notice of sale filed
with the county clerk under Section 51.002(b) regarding residential
real property must include a completed and sworn form prescribed by
the board of the Texas Department of Housing and Community Affairs
under Section 2306.084(b), Government Code.
(b) If information requested by the form is unknown by the
mortgage servicer, the mortgage servicer must provide the
information that is known and file an affidavit with the county
clerk based on personal knowledge that the mortgage servicer made a
diligent inquiry and has been unable to locate the information
requested.
(c) A person who purchases residential real property at a
foreclosure sale must file with the county clerk of each county in
which the property is located, not later than the 10th day after the
date of the foreclosure sale:
(1) the deed to the property for recording; and
(2) a completed and sworn form prescribed by the board
of the Texas Department of Housing and Community Affairs under
Section 2306.084(c), Government Code.
(d) The county clerk may:
(1) accept data required to be submitted on a form
required to be filed under this section in an electronic form
instead of by filing if the submission is sworn and the date of
submission is recorded; or
(2) authorize the entry of data electronically in the
county clerk's offices.
SECTION 3. (a) Not later than November 1, 2009, the board
of the Texas Department of Housing and Community Affairs shall
prescribe the forms and procedures required by Section 2306.084,
Government Code, as added by this Act.
(b) Except as provided by this section, Section 51.0023,
Property Code, as added by this Act, applies only to a sale of
residential real property in which notice of sale under Section
51.002, Property Code, is provided on or after December 1, 2009. A
sale in which notice of sale is provided before December 1, 2009, is
subject to the law in effect immediately before the effective date
of this Act, and that law is continued in effect for that purpose.
SECTION 4. This Act takes effect September 1, 2009.