81R8202 UM-D
By: Martinez Fischer H.B. No. 2761
A BILL TO BE ENTITLED
AN ACT
relating to notification requirements regarding foreclosure
prevention assistance in connection with a home loan.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 343, Finance Code, is
amended by adding Section 343.106 to read as follows:
Sec. 343.106. NOTICE OF AVAILABLE FORECLOSURE PREVENTION
ASSISTANCE. (a) In this section, "foreclosure prevention
assistance" includes:
(1) outreach and marketing to inform homeowners in
danger of foreclosure of appropriate resources for assistance;
(2) connecting homeowners with entities that provide
foreclosure intervention counseling; and
(3) providing foreclosure intervention counseling.
(b) A lender, mortgage banker, or licensed mortgage broker
shall provide at the closing of a home loan a written notice to each
borrower on the loan regarding foreclosure prevention assistance.
(c) A lender for a home loan shall provide a borrower with
the same notice regarding foreclosure prevention assistance each
time the lender is:
(1) required to provide a notice of default under
Section 51.002(d), Property Code; or
(2) required by other law to provide the borrower
with:
(A) a delinquency notice; and
(B) a right to cure letter.
(d) The notice required by this section must be provided on
a separate document and contain information regarding foreclosure
prevention assistance in the form adopted under Subsection (e).
(e) The Texas Department of Housing and Community Affairs
and finance commission shall jointly adopt a foreclosure prevention
assistance notice form that contains the names, website addresses,
and hotline numbers for nonprofit organizations that provide
foreclosure prevention assistance in this state. In adopting the
notice under this section, the Texas Department of Housing and
Community Affairs and finance commission shall consider the ability
of a nonprofit organization to serve the entire state and whether
the nonprofit organization is able to provide homeowners with
regularly updated information regarding the availability of
federal foreclosure prevention assistance.
(f) The failure of a lender, mortgage banker, or licensed
mortgage broker to provide each borrower with a notice complying
with this section does not affect the validity or enforceability of
the home loan by any holder of the loan.
SECTION 2. (a) The Texas Department of Housing and
Community Affairs and the Finance Commission of Texas shall jointly
adopt the foreclosure prevention assistance notice form required by
Section 343.106, Finance Code, as added by this Act, as soon as
practicable after the effective date of this Act.
(b) Section 343.106(b), Finance Code, as added by this Act,
applies only to a loan closed on or after the date on which a notice
form is adopted under Subsection (a) of this section. A loan closed
before the date on which the notice form is adopted is governed by
the law in effect on the date the loan was closed, and the former law
is continued in effect for that purpose.
(c) Section 343.106(c), Finance Code, as added by this Act,
applies only to a notice or letter required to be sent by the lender
on or after the date on which a notice form is adopted under
Subsection (a) of this section. A notice or letter required to be
sent by the lender before the date on which the notice form is
adopted is governed by the law in effect on the date the loan was
closed, and the former law is continued in effect for that purpose.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.