Texas House Bill HB2761

Texas 2009 - 81st Regular

Caption

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.