Relating to notification requirements regarding foreclosure prevention assistance in connection with a home loan.
Impact
The implementation of HB2761 is expected to have a positive impact on state laws regulating home loans and foreclosure processes. By standardizing the notification requirements across the state, it aims to facilitate better communication between lenders and borrowers. This is particularly vital in times when economic conditions may lead to increased foreclosures. The bill instructs the Texas Department of Housing and Community Affairs and the Finance Commission to create a notice form that accurately reflects current available resources, potentially strengthening the safety net for at-risk homeowners.
Summary
House Bill 2761 is designed to enhance borrower awareness regarding available foreclosure prevention assistance connected to home loans. The bill mandates that lenders, mortgage bankers, or licensed mortgage brokers must provide borrowers with a written notice about foreclosure assistance resources at the closing of a home loan. This notice would include information about foreclosure intervention counseling and entities that can aid homeowners in danger of foreclosure. The intent behind this requirement is to ensure that homeowners are fully informed of available support to prevent foreclosure, which can significantly affect families and communities.
Contention
Although HB2761 aims to provide essential tools for assisting homeowners, it is likely to face some contention regarding its implementation. Stakeholders may debate the adequacy of the resources listed in the notification and whether the proposed assistance is accessible and effective. Moreover, lenders might express concerns over the administrative burden imposed by these notification requirements. As the bill advances, it will be crucial to address these concerns to ensure that both lenders and borrowers can navigate the foreclosure landscape more effectively.
Proposing a constitutional amendment to remove the requirement that a home equity loan be closed only at the office of the lender, an attorney at law, or a title company.
Proposing a constitutional amendment authorizing the legislature to provide for exceptions to the requirement that a home equity loan be closed only at the office of the lender, an attorney at law, or a title company.
Relating to prevention of and safety requirements regarding sudden cardiac arrest affecting public school students participating in interscholastic athletics.
Expands scope of Foreclosure Mediation Assistance Program during State of Emergency to allow use of program funds for payment to counselors who help disaster victims process applications for assistance.
Expands scope of Foreclosure Mediation Assistance Program during State of Emergency to allow use of program funds for payment to counselors who help disaster victims process applications for assistance.
An Act Concerning Foreclosure Mediation And Assistance Programs, The Highly Compensated Employee Exemption For Mortgage Loan Originators, General-use Prepaid Cards And Neighborhood Protection.