| 1 | 1 | | 81R10324 JAM-D |
|---|
| 2 | 2 | | By: Davis of Dallas H.B. No. 2675 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to the establishment of the foreclosure prevention |
|---|
| 8 | 8 | | program. |
|---|
| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 10 | 10 | | SECTION 1. Chapter 2306, Government Code, is amended by |
|---|
| 11 | 11 | | adding Subchapter X-1 to read as follows: |
|---|
| 12 | 12 | | SUBCHAPTER X-1. FORECLOSURE PREVENTION PROGRAM |
|---|
| 13 | 13 | | Sec. 2306.531. DEFINITION. In this subchapter, "program" |
|---|
| 14 | 14 | | means the foreclosure prevention program. |
|---|
| 15 | 15 | | Sec. 2306.532. ESTABLISHMENT OF PROGRAM. The department |
|---|
| 16 | 16 | | shall establish the foreclosure prevention program to: |
|---|
| 17 | 17 | | (1) make financing and refinancing education and |
|---|
| 18 | 18 | | assistance available to the public; and |
|---|
| 19 | 19 | | (2) provide financial assistance to homeowners: |
|---|
| 20 | 20 | | (A) facing foreclosure; or |
|---|
| 21 | 21 | | (B) whose income is adversely affected by |
|---|
| 22 | 22 | | circumstances such as unemployment, a reduction of wages or hours |
|---|
| 23 | 23 | | of employment, illness, or the death of a spouse or other person |
|---|
| 24 | 24 | | contributing to the income of a homeowner, to the extent that the |
|---|
| 25 | 25 | | homeowner is unable to make mortgage payments on the home. |
|---|
| 26 | 26 | | Sec. 2306.533. PROGRAM ADMINISTRATION. For purposes of the |
|---|
| 27 | 27 | | program, the department shall: |
|---|
| 28 | 28 | | (1) investigate and implement methods for |
|---|
| 29 | 29 | | disseminating to homeowners and homebuyers information designed to |
|---|
| 30 | 30 | | reduce and prevent foreclosures on homes in this state, including |
|---|
| 31 | 31 | | information concerning: |
|---|
| 32 | 32 | | (A) mortgage financing and refinancing options; |
|---|
| 33 | 33 | | (B) home equity practices; |
|---|
| 34 | 34 | | (C) predatory lending practices; and |
|---|
| 35 | 35 | | (D) on request, a comparison of any financing or |
|---|
| 36 | 36 | | refinancing terms being offered to an individual and terms |
|---|
| 37 | 37 | | otherwise available to the individual; and |
|---|
| 38 | 38 | | (2) establish eligibility requirements for homeowners |
|---|
| 39 | 39 | | to receive financial assistance under the program. |
|---|
| 40 | 40 | | Sec. 2306.534. FUNDING. The department shall seek and |
|---|
| 41 | 41 | | apply for any available federal funding to finance the program. |
|---|
| 42 | 42 | | Sec. 2306.535. RULES. The department shall adopt rules |
|---|
| 43 | 43 | | necessary to implement the program. |
|---|
| 44 | 44 | | SECTION 2. The Texas Department of Housing and Community |
|---|
| 45 | 45 | | Affairs shall adopt any rules required by Subchapter X-1, Chapter |
|---|
| 46 | 46 | | 2306, Government Code, as added by this Act, not later than December |
|---|
| 47 | 47 | | 1, 2009. |
|---|
| 48 | 48 | | SECTION 3. As soon as practicable, the Texas Department of |
|---|
| 49 | 49 | | Housing and Community Affairs shall apply for and actively pursue |
|---|
| 50 | 50 | | federal funding for purposes of the foreclosure prevention program |
|---|
| 51 | 51 | | established under Subchapter X-1, Chapter 2306, Government Code, as |
|---|
| 52 | 52 | | added by this Act. |
|---|
| 53 | 53 | | SECTION 4. This Act takes effect September 1, 2009. |
|---|