83R4625 DDT-F
By: Canales H.B. No. 1441
A BILL TO BE ENTITLED
AN ACT
relating to accounting and payoff statements for certain
seller-financed residential loans; providing a penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 343, Finance Code, is amended by adding
Subchapter D to read as follows:
SUBCHAPTER D. SELLER-FINANCED RESIDENTIAL LOANS
Sec. 343.301. APPLICATION. This subchapter applies only to
a seller-financed loan secured by a purchase money lien on
residential real property that is not a federally related mortgage
loan, as defined by 12 U.S.C. Section 2602.
Sec. 343.302. ANNUAL ACCOUNTING STATEMENT REQUIRED. (a)
The lender shall provide to the borrower an accounting statement in
January of each year for the term of the loan. If the lender mails
the statement to the borrower, the statement must be postmarked not
later than January 31.
(b) The accounting statement must include the following
information:
(1) the amount paid toward the outstanding balance of
the loan during the preceding calendar year, including separate
amounts showing the total amount applied to interest and the total
amount applied to principal;
(2) the remaining principal balance owed on the loan;
(3) the number of payments remaining on the loan;
(4) the amounts paid to taxing authorities on the
borrower's behalf if collected by the lender; and
(5) the amounts paid to insure the property on the
borrower's behalf if collected by the lender.
(c) Except as provided by Section 343.304, in addition to
any other legal and equitable remedy available, a lender under this
section who fails to comply with this section is liable to a
borrower who is injured by the violation for:
(1) a penalty in the amount of $500;
(2) actual damages;
(3) court costs; and
(4) reasonable attorney's fees.
Sec. 343.303. PAYMENT CONSIDERED TIMELY. In a proceeding
related to a loan to which this subchapter applies, including an
action brought under Section 343.302(c), a loan payment is
considered to have been paid on the due date by the borrower if the
payment came due during a calendar year for which the lender did not
provide a required accounting statement to the borrower under
Section 343.302.
Sec. 343.304. OTHER PENALTIES AND LIABILITIES NOT
APPLICABLE. Chapter 349 does not apply to a violation of this
subchapter.
SECTION 2. Section 343.106, Finance Code, is amended by
adding Subsection (h) to read as follows:
(h) For purposes of providing a payoff statement required
under this section for a seller-financed loan to which Subchapter D
applies, a loan payment made to the lender is considered to have
been paid on the due date by the borrower if the payment came due
during a calendar year for which the lender did not provide a
required accounting statement to the borrower under Section
343.302.
SECTION 3. A lender is not required to provide an accounting
statement required by Section 343.302, Finance Code, as added by
this Act, before January 1, 2014.
SECTION 4. This Act takes effect September 1, 2013.