Texas 2011 - 82nd Regular

Texas House Bill HB558 Compare Versions

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1	1	By: Deshotel (Senate Sponsor - Carona) H.B. No. 558
2	2	(In the Senate - Received from the House April 14, 2011;
3	3	April 20, 2011, read first time and referred to Committee on
4	4	Business and Commerce; April 26, 2011, reported favorably by the
5	5	following vote: Yeas 9, Nays 0; April 26, 2011, sent to printer.)
6	6
7	7
8	8	A BILL TO BE ENTITLED
9	9	AN ACT
10	10	relating to payoff statements provided in connection with certain
11	11	home loans.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Subchapter B, Chapter 343, Finance Code, is
14	14	amended by adding Section 343.106 to read as follows:
15	15	Sec. 343.106. PAYOFF STATEMENTS. (a) In this section,
16	16	"mortgagee," "mortgage servicer," and "mortgagor" have the
17	17	meanings assigned by Section 51.0001, Property Code.
18	18	(b) The finance commission shall adopt rules governing
19	19	requests by title insurance companies for payoff information from
20	20	mortgage servicers related to home loans and the provision of that
21	21	information, including rules prescribing a standard payoff
22	22	statement form that must be used by mortgage servicers to provide
23	23	those payoff statements.
24	24	(c) In adopting rules under Subsection (b), the finance
25	25	commission shall require a mortgage servicer who receives a request
26	26	for a payoff statement with respect to a home loan from a title
27	27	insurance company to deliver the requested payoff statement on the
28	28	prescribed form within a time specified by finance commission rule,
29	29	which must allow the mortgage servicer at least seven business days
30	30	after the date the request is received to deliver the payoff
31	31	statement.
32	32	(d) The standard payoff statement form prescribed by the
33	33	finance commission under Subsection (b) must require that a
34	34	completed form:
35	35	(1) state the proposed closing date for the sale and
36	36	conveyance of the real property securing the home loan or for any
37	37	other transaction that would involve the payoff of the home loan, as
38	38	specified by the title insurance company's request; and
39	39	(2) provide a payoff amount that is valid through that
40	40	date.
41	41	(e) Except as provided by Subsection (f) or (g), if the
42	42	mortgage servicer provides a completed payoff statement form that
43	43	meets the requirements of this section and rules adopted under this
44	44	section in response to a request for a payoff statement, the
45	45	mortgage servicer or mortgagee may not, on or before the proposed
46	46	closing date, demand that a mortgagor pay an amount in excess of the
47	47	payoff amount specified in the payoff statement.
48	48	(f) If a mortgage servicer or mortgagee discovers that a
49	49	payoff statement is incorrect, the mortgage servicer or mortgagee
50	50	may correct and deliver the statement on or before the second
51	51	business day before the specified proposed closing date. The
52	52	corrected payoff statement must be delivered to the requestor by:
53	53	(1) certified mail with return receipt requested; and
54	54	(2) electronic means, if the requestor provides the
55	55	mortgage servicer with a means to deliver the corrected statement
56	56	electronically.
57	57	(g) If a mortgage servicer submits an incorrect payoff
58	58	statement to a title insurance company that results in the mortgage
59	59	servicer requesting an amount that is less than the correct payoff
60	60	amount, the mortgage servicer or mortgagee does not deliver a
61	61	corrected payoff statement in accordance with Subsection (f), and
62	62	the mortgage servicer receives payment in the amount specified in
63	63	the payoff statement, the difference between the amount included in
64	64	the payoff statement and the correct payoff amount:
65	65	(1) remains a liability of the former mortgagor owed
66	66	to the mortgagee; and
67	67	(2) if the payoff statement is in connection with:
68	68	(A) the sale of the real property:
69	69	(i) the deed of trust or other contract lien
70	70	securing an interest in the property is released;
71	71	(ii) within a reasonable time after receipt
72	72	of payment by the mortgagee or mortgage servicer, the mortgagee or
73	73	mortgage servicer, as applicable, shall deliver to the title
74	74	company a release of the deed of trust or other contract lien
75	75	securing an interest in the property; and
76	76	(iii) any proceeds disbursed at closing to
77	77	or for the benefit of the mortgagor, excluding closing costs
78	78	related to the transaction, are subject to a constructive trust for
79	79	the benefit of the mortgagee to the extent of the underpayment; or
80	80	(B) a refinance by the mortgagor of the existing
81	81	home loan:
82	82	(i) the lien securing the existing home
83	83	loan becomes subordinate to the lien securing the new home loan; and
84	84	(ii) any proceeds disbursed at closing to
85	85	or for the benefit of the mortgagor, excluding closing costs
86	86	related to the transaction, are subject to a constructive trust for
87	87	the benefit of the mortgagee to the extent of the underpayment.
88	88	SECTION 2. (a) As soon as practicable after the effective
89	89	date of this Act, the Finance Commission of Texas shall adopt the
90	90	rules, including the standard payoff statement form, required by
91	91	Section 343.106, Finance Code, as added by this Act.
92	92	(b) Notwithstanding Section 343.106, Finance Code, as added
93	93	by this Act, a mortgage servicer is not required to comply with that
94	94	section before the 90th day after the date the Finance Commission of
95	95	Texas adopts the rules required by that section.
96	96	SECTION 3. This Act takes effect September 1, 2011.
97	97	* * * * *