| 1 | 1 | | 81R8202 UM-D |
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| 2 | 2 | | By: Martinez Fischer H.B. No. 2761 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to notification requirements regarding foreclosure |
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| 8 | 8 | | prevention assistance in connection with a home loan. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter B, Chapter 343, Finance Code, is |
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| 11 | 11 | | amended by adding Section 343.106 to read as follows: |
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| 12 | 12 | | Sec. 343.106. NOTICE OF AVAILABLE FORECLOSURE PREVENTION |
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| 13 | 13 | | ASSISTANCE. (a) In this section, "foreclosure prevention |
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| 14 | 14 | | assistance" includes: |
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| 15 | 15 | | (1) outreach and marketing to inform homeowners in |
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| 16 | 16 | | danger of foreclosure of appropriate resources for assistance; |
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| 17 | 17 | | (2) connecting homeowners with entities that provide |
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| 18 | 18 | | foreclosure intervention counseling; and |
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| 19 | 19 | | (3) providing foreclosure intervention counseling. |
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| 20 | 20 | | (b) A lender, mortgage banker, or licensed mortgage broker |
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| 21 | 21 | | shall provide at the closing of a home loan a written notice to each |
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| 22 | 22 | | borrower on the loan regarding foreclosure prevention assistance. |
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| 23 | 23 | | (c) A lender for a home loan shall provide a borrower with |
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| 24 | 24 | | the same notice regarding foreclosure prevention assistance each |
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| 25 | 25 | | time the lender is: |
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| 26 | 26 | | (1) required to provide a notice of default under |
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| 27 | 27 | | Section 51.002(d), Property Code; or |
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| 28 | 28 | | (2) required by other law to provide the borrower |
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| 29 | 29 | | with: |
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| 30 | 30 | | (A) a delinquency notice; and |
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| 31 | 31 | | (B) a right to cure letter. |
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| 32 | 32 | | (d) The notice required by this section must be provided on |
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| 33 | 33 | | a separate document and contain information regarding foreclosure |
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| 34 | 34 | | prevention assistance in the form adopted under Subsection (e). |
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| 35 | 35 | | (e) The Texas Department of Housing and Community Affairs |
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| 36 | 36 | | and finance commission shall jointly adopt a foreclosure prevention |
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| 37 | 37 | | assistance notice form that contains the names, website addresses, |
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| 38 | 38 | | and hotline numbers for nonprofit organizations that provide |
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| 39 | 39 | | foreclosure prevention assistance in this state. In adopting the |
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| 40 | 40 | | notice under this section, the Texas Department of Housing and |
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| 41 | 41 | | Community Affairs and finance commission shall consider the ability |
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| 42 | 42 | | of a nonprofit organization to serve the entire state and whether |
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| 43 | 43 | | the nonprofit organization is able to provide homeowners with |
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| 44 | 44 | | regularly updated information regarding the availability of |
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| 45 | 45 | | federal foreclosure prevention assistance. |
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| 46 | 46 | | (f) The failure of a lender, mortgage banker, or licensed |
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| 47 | 47 | | mortgage broker to provide each borrower with a notice complying |
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| 48 | 48 | | with this section does not affect the validity or enforceability of |
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| 49 | 49 | | the home loan by any holder of the loan. |
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| 50 | 50 | | SECTION 2. (a) The Texas Department of Housing and |
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| 51 | 51 | | Community Affairs and the Finance Commission of Texas shall jointly |
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| 52 | 52 | | adopt the foreclosure prevention assistance notice form required by |
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| 53 | 53 | | Section 343.106, Finance Code, as added by this Act, as soon as |
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| 54 | 54 | | practicable after the effective date of this Act. |
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| 55 | 55 | | (b) Section 343.106(b), Finance Code, as added by this Act, |
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| 56 | 56 | | applies only to a loan closed on or after the date on which a notice |
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| 57 | 57 | | form is adopted under Subsection (a) of this section. A loan closed |
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| 58 | 58 | | before the date on which the notice form is adopted is governed by |
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| 59 | 59 | | the law in effect on the date the loan was closed, and the former law |
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| 60 | 60 | | is continued in effect for that purpose. |
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| 61 | 61 | | (c) Section 343.106(c), Finance Code, as added by this Act, |
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| 62 | 62 | | applies only to a notice or letter required to be sent by the lender |
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| 63 | 63 | | on or after the date on which a notice form is adopted under |
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| 64 | 64 | | Subsection (a) of this section. A notice or letter required to be |
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| 65 | 65 | | sent by the lender before the date on which the notice form is |
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| 66 | 66 | | adopted is governed by the law in effect on the date the loan was |
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| 67 | 67 | | closed, and the former law is continued in effect for that purpose. |
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| 68 | 68 | | SECTION 3. This Act takes effect immediately if it receives |
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| 69 | 69 | | a vote of two-thirds of all the members elected to each house, as |
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| 70 | 70 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 71 | 71 | | Act does not receive the vote necessary for immediate effect, this |
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| 72 | 72 | | Act takes effect September 1, 2009. |
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