By: West S.B. No. 1375
A BILL TO BE ENTITLED
AN ACT
relating to the establishment of the Texas savvy homeowner program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 2306, Government Code, is amended by
adding Subchapter OO to read as follows:
SUBCHAPTER OO. TEXAS SAVVY HOMEOWNER PROGRAM
Sec. 2306.2001. DEFINITION. In this subchapter, "program"
means the Texas savvy homeowner program.
Sec. 2306.2002. ESTABLISHMENT OF PROGRAM. (a) The
department shall, in coordination with the Texas State Affordable
Housing Corporation, the Department of Savings and Mortgage
Lending, the Office of Consumer Credit Commissioner, and local
housing finance corporations, establish the Texas savvy homeowner
program to make refinancing education and assistance available to
all individuals residing in a home for which they have received
mortgage loan, mortgage credit certificate, down payment, or other
loan assistance from the department, the Texas State Affordable
Housing Corporation, or a housing finance corporation, including
assistance through mortgage revenue bonds or through the
department's allocation of funds provided to the state under the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
Section 12701 et seq.).
(b) Except as provided by Subsection (c), participation in
the program is voluntary.
(c) Participation in the program is mandatory for
individuals receiving mortgage loan, mortgage credit certificate,
down payment, or other loan assistance from the department, the
Texas State Affordable Housing Corporation, or a housing finance
corporation on or after December 1, 2009. Any assistance described
by this subsection that is issued on or after that date shall be
provided to the individual with information concerning:
(1) the requirements and procedures of the program;
and
(2) the contact information of the program
administrator.
Sec. 2306.2003. PROGRAM DEVELOPMENT AND ADMINISTRATION.
(a) The department shall, in coordination with the Texas State
Affordable Housing Corporation, the Department of Savings and
Mortgage Lending, the Office of Consumer Credit Commissioner, and
housing finance corporations, develop:
(1) best practices for home refinancing; and
(2) a curriculum for the provision of individualized
counseling to program participants that includes information
concerning:
(A) mortgage refinancing options;
(B) home equity practices;
(C) predatory lending practices; and
(D) a comparison of any refinancing terms being
offered to the individual and refinancing terms otherwise available
to the individual.
(b) The department shall:
(1) administer the program directly; or
(2) prepare and issue a request for proposal and enter
into a contract providing for the administration of the program by a
nonprofit corporation that:
(A) is a housing counselor certified by the
United States Department of Housing and Urban Development or the
department; and
(B) complies with any requirements imposed on the
program administrator in relation to the best practices and
curriculum developed by the department under Subsection (a).
(c) If the department does not administer the program, the
program administrator shall submit quarterly reports to the
department detailing the counseling services provided and whether
the counseling recipients obtained refinancing.
Sec. 2306.2004. MODIFICATION OF LOAN TERMS. (a) As a
condition of receiving mortgage loan, mortgage credit certificate,
down payment, or other loan assistance from the department, the
Texas State Affordable Housing Corporation, or a local housing
finance corporation, a program participant must agree to notify the
program administrator in writing of any intent to modify the terms
of any loan secured by the home in which the participant resides.
The notice must be provided not later than the 60th day before the
date the loan terms are modified.
(b) On receipt of notice under Subsection (a), the program
administrator shall:
(1) contact the loan recipient not later than the 30th
day after the date of receipt of the notice; and
(2) on the phone or in person, provide the loan
recipient with an individualized counseling session based on the
curriculum developed by the department under Section 2306.2003(a).
Sec. 2306.2005. RULES. The department may adopt rules
necessary to implement this subchapter.
SECTION 2. The Texas Department of Housing and Community
Affairs shall adopt any rules required by Subchapter OO, Chapter
2306, Government Code, as added by this Act, not later than December
1, 2009.
SECTION 3. This Act takes effect September 1, 2009.