Texas 2009 - 81st Regular

Texas Senate Bill SB1375 Compare Versions

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1	1	By: West S.B. No. 1375
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the establishment of the Texas savvy homeowner program.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Chapter 2306, Government Code, is amended by
9	9	adding Subchapter OO to read as follows:
10	10	SUBCHAPTER OO. TEXAS SAVVY HOMEOWNER PROGRAM
11	11	Sec. 2306.2001. DEFINITION. In this subchapter, "program"
12	12	means the Texas savvy homeowner program.
13	13	Sec. 2306.2002. ESTABLISHMENT OF PROGRAM. (a) The
14	14	department shall, in coordination with the Texas State Affordable
15	15	Housing Corporation, the Department of Savings and Mortgage
16	16	Lending, the Office of Consumer Credit Commissioner, and local
17	17	housing finance corporations, establish the Texas savvy homeowner
18	18	program to make refinancing education and assistance available to
19	19	all individuals residing in a home for which they have received
20	20	mortgage loan, mortgage credit certificate, down payment, or other
21	21	loan assistance from the department, the Texas State Affordable
22	22	Housing Corporation, or a housing finance corporation, including
23	23	assistance through mortgage revenue bonds or through the
24	24	department's allocation of funds provided to the state under the
25	25	Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
26	26	Section 12701 et seq.).
27	27	(b) Except as provided by Subsection (c), participation in
28	28	the program is voluntary.
29	29	(c) Participation in the program is mandatory for
30	30	individuals receiving mortgage loan, mortgage credit certificate,
31	31	down payment, or other loan assistance from the department, the
32	32	Texas State Affordable Housing Corporation, or a housing finance
33	33	corporation on or after December 1, 2009. Any assistance described
34	34	by this subsection that is issued on or after that date shall be
35	35	provided to the individual with information concerning:
36	36	(1) the requirements and procedures of the program;
37	37	and
38	38	(2) the contact information of the program
39	39	administrator.
40	40	Sec. 2306.2003. PROGRAM DEVELOPMENT AND ADMINISTRATION.
41	41	(a) The department shall, in coordination with the Texas State
42	42	Affordable Housing Corporation, the Department of Savings and
43	43	Mortgage Lending, the Office of Consumer Credit Commissioner, and
44	44	housing finance corporations, develop:
45	45	(1) best practices for home refinancing; and
46	46	(2) a curriculum for the provision of individualized
47	47	counseling to program participants that includes information
48	48	concerning:
49	49	(A) mortgage refinancing options;
50	50	(B) home equity practices;
51	51	(C) predatory lending practices; and
52	52	(D) a comparison of any refinancing terms being
53	53	offered to the individual and refinancing terms otherwise available
54	54	to the individual.
55	55	(b) The department shall:
56	56	(1) administer the program directly; or
57	57	(2) prepare and issue a request for proposal and enter
58	58	into a contract providing for the administration of the program by a
59	59	nonprofit corporation that:
60	60	(A) is a housing counselor certified by the
61	61	United States Department of Housing and Urban Development or the
62	62	department; and
63	63	(B) complies with any requirements imposed on the
64	64	program administrator in relation to the best practices and
65	65	curriculum developed by the department under Subsection (a).
66	66	(c) If the department does not administer the program, the
67	67	program administrator shall submit quarterly reports to the
68	68	department detailing the counseling services provided and whether
69	69	the counseling recipients obtained refinancing.
70	70	Sec. 2306.2004. MODIFICATION OF LOAN TERMS. (a) As a
71	71	condition of receiving mortgage loan, mortgage credit certificate,
72	72	down payment, or other loan assistance from the department, the
73	73	Texas State Affordable Housing Corporation, or a local housing
74	74	finance corporation, a program participant must agree to notify the
75	75	program administrator in writing of any intent to modify the terms
76	76	of any loan secured by the home in which the participant resides.
77	77	The notice must be provided not later than the 60th day before the
78	78	date the loan terms are modified.
79	79	(b) On receipt of notice under Subsection (a), the program
80	80	administrator shall:
81	81	(1) contact the loan recipient not later than the 30th
82	82	day after the date of receipt of the notice; and
83	83	(2) on the phone or in person, provide the loan
84	84	recipient with an individualized counseling session based on the
85	85	curriculum developed by the department under Section 2306.2003(a).
86	86	Sec. 2306.2005. RULES. The department may adopt rules
87	87	necessary to implement this subchapter.
88	88	SECTION 2. The Texas Department of Housing and Community
89	89	Affairs shall adopt any rules required by Subchapter OO, Chapter
90	90	2306, Government Code, as added by this Act, not later than December
91	91	1, 2009.
92	92	SECTION 3. This Act takes effect September 1, 2009.