83R10007 DDT-F
By: Martinez H.B. No. 2425
A BILL TO BE ENTITLED
AN ACT
relating to the form, content, and provision of payoff statements
for property tax loans.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 32.06, Tax Code, is amended by amending
Subsection (a-4) and adding Subsection (a-5) to read as follows:
(a-4) The Finance Commission of Texas shall:
(1) prescribe the form and content of an appropriate
disclosure statement to be provided to a property owner before the
execution of a tax lien transfer;
(2) adopt rules relating to the reasonableness of
closing costs, fees, and other charges permitted under this
section; [and]
(3) by rule prescribe the form and content of the sworn
document under Subsection (a-1) and the certified statement under
Subsection (b); and
(4) by rule prescribe the form and content of a request
a consensual lender with an existing lien on the property must use
to request a payoff statement and the transferee's response to the
request, including the period within which the transferee must
respond.
(a-5) Notwithstanding Subsection (f-3), a consensual lender
described by Subsection (a-4)(4) may request a payoff statement
before the tax loan becomes delinquent. The Finance Commission of
Texas by rule shall require a transferee who receives a request for
a payoff statement to deliver the requested payoff statement on the
prescribed form within a period prescribed by finance commission
rule. The prescribed period must allow the transferee at least
seven business days after the date the request is received to
deliver the payoff statement. The consumer credit commissioner may
assess an administrative penalty under Subchapter F, Chapter 14,
Finance Code, against a transferee who wilfully fails to provide
the payoff statement as prescribed by finance commission rule.
SECTION 2. As soon as practicable after the effective date
of this Act, the Finance Commission of Texas shall adopt rules
necessary to implement the changes in law made by this Act.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2013.